Adam Smith

In: Business and Management

Submitted By joseroberto1227
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ANALYTICAL ESSAY 1: How Adam Smith Has Shaped Our Economy For The Better

Jose Arguello

University of Redlands

July 25, 2013

Introduction The purpose of this paper is to analyze and discuss how Adam Smith’s economic theories have shaped our economy for the better. This paper will define Adam Smith’s major economic theories and relate them to today’s economy. This paper will conclude with recommendations on how some of these theories can be improved.
Discussion
When people think of Adam Smith they think of Adam Smith “the economist.” In fact, many don’t realize that Adam Smith was a philosopher at heart. From that critical thinking space as a philosopher, Adam Smith developed his economic theories. Adam Smith obtained a professorship at Glasgow teaching moral philosophy. “Here, Smith developed his passion for liberty, reason, and free speech. In 1740 Smith was awarded the Snell exhibition and left to attend Balliol College, Oxford.” (Buchanan, 2006) These are important facts about Adam Smith because it gives us an insight to his philosophy and eventually into his economic theories. Furthermore, before Adam Smith wrote his well-known work, The Wealth of Nations, he wrote The Theory of Moral Sentiments. It is important to note that in writing The Theory of Moral Sentiment, Adam Smith’s goal “was to explain the source of mankind's ability to form moral judgments, in spite of man's natural inclinations towards self-interest. Smith proposes a theory of sympathy, in which the act of observing others makes people aware of themselves and the morality of their own behavior.” (Falkner, 1997) This view by Adam Smith is contrary to what many people generally relate to him, such as a “classical capitalist,” who is only interested in self-serving actions. In fact, “It surprises many on the political right to know that he is considered a classical…...

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