explain adam smith theory of distribution
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Answer:
According to Adam Smith all that economics deals with is wealth. It explains how people acquire mass wealth. It emphasises an earning and spending wealth as if wealth is everything for man. It also deals with the laws of production, distribution and consumption of wealth.
Explanation:
In this article we will discuss about Adam Smith:- 1. Introduction to Adam Smith 2. Life and Antecedents of Adam Smith 3. Factors Influencing 4. Philosophy 5. Smith’s Naturalism and Optimism 6. Wealth of Nations 7. Economic Ideas 8. Theory of Value 9. Ideas on Distribution 10. Theory of Economic Growth 11. Laissez Faire or Economic Liberty 12. Critical Estimate.
Introduction to Adam Smith:
Adam Smith stands as an institution by himself in the history of economic thought. He is regarded as the founder of modern economics. It is no exaggeration to say that Economic science was born in 1776 with Adam Smith’s ‘Wealth of Nations’.
He is the first economist who dealt economic problems in a systematic manner. In other words, he is the first academic economist. He has been rightly called the “Father of Political Economy”. Alexander Gray has rightly said, “before Adam Smith there had been much economic discussions, with him we reach the stage of discussing economics”.
Life and Antecedents of Adam Smith:
Adam Smith was born in 1723 in a small town of Kirkaldy in Scotland. He studied at the Universities of Glasgow and Oxford and specialised in Mathematics, Natural Philosophy and Moral and Political sciences. At Glasgow, he worked as a Professor of Logic and later became a Professor of Moral Philosophy.
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In 1759, he published his “Theory of Moral Sentiments” which earned him great fame. In 1764, Smith accepted to become the Tutor of the Duke of Buccleuch. With the Duke, Adam Smith toured Europe. On his European tour, in France he met the famous Physiocrat Quesnay, Turgot and Voltaire.
On his return to Scotland, he settled down to write his famous book, “An Inquiry into the Nature and Causes of the Wealth of Nations” which was published in 1776. In 1778, he was appointed as Commissioner of Customs at Edinburg which position he held till his death in 1790.
Factors Influencing Adam Smith:
There are three important factors that contributed to the economic thought of Adam Smith: