Speaker: See above.
Date/Context: This document was created in 1776. It focuses on how we as humans participate in trader, interactions with others, and trade with other nations. This document is considered the original works on economics.
Summary:
- Human Nature and the Division of Labor
- Man, unlike other animal species, will always need assistance/interaction with one another.Usually in the animal kingdom, species become completely independent when they are grown. For Man, he shall rely on the help from his fellow being, However, he should never expect it. When we are born, we are all basically the same. Technically in the early stages of our childhood, we do not differentiate from others. It is not until we choose a specific occupation that we begin to become different. We develop different experiences and receive specific education.
- The Invisible Hand**
- When it is our goal to promote ourselves, we actually promote our society. We try to make something out of ourselves, and in doing so, we basically make our nation better, economically. Though we are only trying to watch out for ourselves, we are actually helping the "revenue" of our society.
- Unreasonableness of Restraints**
- Trade among other countries should happen peacefully without conflict. However, this act of buying and selling creates so much antipathy; Feared to be the nature of human affairs. In many European countries such as Great Britain, they focus on trying to withhold trade from foreign manufacturers. This restraint favors the body of the people.
Key Quotations:
- "The difference of natural talents in different men is, in reality, much less than we are aware of..."
- "...every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows hoe much he is promoting it."
- "Commerce, which ought naturally to be, amongst nations, as among individuals, a bond of union and friendship, has become the most fertile source of discord and animosity.."
Wow, great summary Brian! I really like how you broke down your explanation into simple topics. The three quotes that you included were also helpful, but I would have liked to read the end of the first one instead of being left with half of a sentence. When looking at Adam Smith's work it is important to note that this is the first break with mercantilism, an economic system based on gold and silver coinage. Mercantilism was prevalent in Europe for most the eighteenth century, and Smith introduced ideas that laid the foundation for modern economics. Another important idea to remember is the term "laissez-faire." This is basically the idea that business should not be regulated by the government, which Smith supported heavily. Another important idea that Smith brought about was increased competition for the benefit of the individual. Smith placed a focus on the individual in order to prove that men should not worry about others when working to accumulate wealth. Overall, great job!
ReplyDeleteWow, great summary Brian! I really like how you broke down your explanation into simple topics. The three quotes that you included were also helpful, but I would have liked to read the end of the first one instead of being left with half of a sentence. When looking at Adam Smith's work it is important to note that this is the first break with mercantilism, an economic system based on gold and silver coinage. Mercantilism was prevalent in Europe for most the eighteenth century, and Smith introduced ideas that laid the foundation for modern economics. Another important idea to remember is the term "laissez-faire." This is basically the idea that business should not be regulated by the government, which Smith supported heavily. Another important idea that Smith brought about was increased competition for the benefit of the individual. Smith placed a focus on the individual in order to prove that men should not worry about others when working to accumulate wealth. Overall, great job!
ReplyDelete