[Author’s Name]
[Institution’s Name]
Essay on Adam Smith< His contribution to the Economics system
Adam Smith,the father of economics, gave us a simple framework by which to describe and understand society. The order Smith imposed on the seeming chaos of the world was the "law" of demand, which says that when the price of a good rises consumers will consume less of it and producers will produce more of it.
The law manifests itself day after day in markets all over the world. Human beings make choices. They respond to incentives. Give taxpayers a break for buying houses and they buy more houses. That is what economic theory is about. It seeks to explain how fundamental realities such as scarcity affect people's choices, and how prices change to convey information about those realities (Elbert V. V. Bowden Judith H. Bowden Judith Holbert Bowden, 2000).
Smith's academic brief was much broader than we are used to today. He taught "moral philosophy", which was divided into four parts; natural theology, ethics, jurisprudence and political economy.
Smith had been a great master of words, and the literati of the new society, in composing their hymns of praise, borrowed liberally from him. At the close of the century his fame was known only to a few discriminating people. However, a short time thereafter, the unfledged writers established him as the father of modern political economy, a national genius of the first rank. Though none had been his pupils, they called him master, searching confirmation for their own theories in his work. It was an artful game of words, and possibly the novices did not realize that it was nothing but a gambol.
In The Theory of Moral Sentiments Smith distinguishes moral precepts of two sorts: rules of justice and other virtues. Rules of justice are precise and accurate, whereas the other virtues are loose and indeterminate.....
