Gavin Preller

AP World, period 7
October 9, 2014

Adam Smith Reading

As the American Revolution began, Adam Smith, a Scottish philosopher started

his own revolution through his influential ideas. Smith displayed some of his ideas
through his book, The Theory of Moral Sentiments. One his Smiths main points in his
book was how people act in their own self-interest, especially in economic affairs. He
described how people act for nothing but seeking happiness. Smith did criticize this
human nature though, as he described, people are led by an invisible hand causing for
them to unintentionally benefit society. To me this is a valid idea. I think this because
mostly all humans are taught morals of how to live. Either through their parents, the
nature of society, or morals they developed themselves, mostly all people seek happiness
but do so in a meaningful manner that doesnt harm society. Smith also wrote a second
book titled, The Wealth of Nations. This book displayed his views on how he thinks the
best ways to create an economy are. Smith believed that the government mainly interferes
with the economy in a negative way. He describes how, in his view, that a nations wealth
comes from its agricultural produce balanced with manufactured goods along with the
labor it took to produce them. He saw that a division of labor between agriculture and
manufactured goods was the best way to create a successful economy. In Smiths view,
specialization in labor would result in a greater output and productivity in workers. Smith
also rallied for free markets, and that the extent of it results in a more successful
economy. Adam Smith saw free markets as a system of natural liberty. This idea of a free
market mechanism didnt favor the farmer or the factory worker, it favored the society.
Mercantilism was an economic system also occurring during the 18th century in Europe.
Mercantilism focused on trade and believed that the more gold and silver a nation
acquired resulted in a more successful economy. Smith strongly disliked mercantilism.
Smith saw the mercantilism system as a system that only benefited a select few in the
nation. Through his point of view, mercantilism did not help economic growth. In Smiths
free market system, he believed that it benefited all social classes and that this was the
correct way to grow an economy, unlike mercantilism specializing in benefiting a certain
group of people. During Smiths era, he was working to fix many economic problems.
One problem that Smith addressed was how the British Parliament crippled free trade,
which was the idea that Smith fought for. British Parliament laws hurt the economy and
allowed monopolies such as in the East India Company to be formed. Adam Smith had to
face problems that mainly involved the British Empire using mercantilist policies that he
disagreed with. Economic problems that face modern society involve huge monopolies
being formed. Also, terrible working conditions and bad living conditions for large
groups of men, women, and children. Child labor is also a great problem that faces
modern society.