Who is the Father of Economics?
Adam Smith is considered to be the Father of Economics because of his book "Theory of Moral Sentiments" and "An Inquiry into the Nature and Causes of the Wealth of Nations". He became the father of modern economics.
The academic field of economics as we know it now had its roots in Adam Smith's The Wealth of Nations. He elaborated on the division of labour and discussed how rational self-interest and competition might promote economic growth in this work and other ones. Smith was divisive in his own time, and writers like Horace Walpole frequently parodied his basic philosophy and writing style. Smith established the fundamental principles of traditional free market economics.
Adam Smith: Early Life
Smith entered Glasgow University at the age of fifteen to pursue a degree in moral philosophy under the tutelage of "the never-to-be-forgotten" Francis Hutcheson. He enrolled in Balliol College in Oxford in 1740 but gave up his exhibition in 1746. He started giving public lectures in Edinburgh in 1748, but he soon changed the subject to "the progress of opulence." It was at this point, when he was in his mid-to-late-20s, that he first outlined the economic theory of "the obvious and simple system of natural liberty," which he would later expound in his Inquiry into the Nature and Causes of the Wealth of Nations. He first met David Hume in about 1750, and the two became great friends.
Before enrolling at Glasgow College at age 14 in 1737, Adam Smith completed his basic education at a two-room "burgh" school in Kirkcaldy, Scotland. Smith received a scholarship at Balliol College in Oxford after graduating in 1740, where he spent six years studying. Adam Smith majored in social philosophy while attending the Universities of Glasgow and Oxford's Balliol College. He was one of the first recipients of scholarships established by fellow Scot John Snell. He collaborated with David Hume during the Scottish Enlightenment after delivering a series of well-received public lectures at the University of Edinburgh after receiving his degree.
The Theory of Moral Sentiments was written and published by Smith while he was a professor of moral philosophy at Glasgow. Later in life, he accepted a tutoring career that allowed him to travel around Europe and connect with other intellectual titans of the day.
Father of Economics
Adam Smith FRSA was a Scottish economist and philosopher who is regarded as the father of political economics and a prominent player in the Scottish Enlightenment. His two major works are "An Inquiry into the Nature and Causes of the Wealth of Nations" and "The Theory of Moral Sentiments." Other names for him included The Father of Economics and The Father of Capitalism.
The father of economics is regarded as Adam Smith. He is the pioneer who gave economics as a brand-new discipline a clearly defined form. The book "Wealth of Nations" was written by him. The founding father of macroeconomics as a distinct field is John Maynard Keynes.
Founder of Modern Economics
The founder of modern economics is regarded as Adam Smith. Smith opposed mercantilism and was a strong supporter of laissez-faire economic principles. Smith put out the concept of an invisible hand in his first book, "The Theory of Moral Sentiments," which described how markets tend to self-regulate through competition, supply and demand, and self-interest. Modern capitalism and modern economics were both born with the publication of "The Wealth of Nations."
Theories by Adam Smith
The Invisible Hand
In his writings from the 1700s, Adam Smith discussed the idea of an "invisible hand," emphasising that selfish people are responsible for this mechanism's advantages to the economy and society.
The invisible-hand idea is frequently presented as a natural phenomenon that, through supply and demand and competition for limited resources, steers capitalism and free markets toward efficiency rather than as something that promotes the happiness of individuals. This framework is made up of organisations like the legal system that serves to safeguard and advance free and fair competition.
Without interference from the government or other parties, the market is able to find equilibrium without being forced into abnormal patterns. Oversupply and shortages are avoided when supply and demand balance naturally. Self-interest and the freedom of production and consumption are how society can function in its best advantage.
Philosophy of Free Markets
The Adam Smith theory of free markets places a strong emphasis on limiting the influence of taxation and government involvement in the market. Smith supported a small government but believed that the government should be in charge of a nation's defence and education systems.
Summary
Adam Smith is known as the Father of Modern Economics. He published The Wealth of Nations in 1776. His idea of an invisible hand directs someone attempting to maximise their individual well-being to provide the best overall result for society as a whole. He is remembered for his best written book named “ An Inquiry into the Nature and Causes of the Wealth of Nations.”
FAQs on Father of Economics: Adam Smith's Contributions
1. Who is the real father of economics?
Adam Smith is widely recognized as the real father of economics. He earned this title due to his groundbreaking work, "An Inquiry into the Nature and Causes of the Wealth of Nations," published in 1776. In this book, Smith established many fundamental economic concepts, such as the division of labor, the invisible hand, and free market dynamics. His ideas built the foundation for classical economics and greatly influenced economic thought worldwide. Smith's theories continue to guide economic policies and debates to this day, cementing his status as the primary founder of modern economic science.
2. Who are the two fathers of economics?
While Adam Smith is often called the father of modern economics, some historians recognize another influential economist, David Ricardo, as a "second father." Adam Smith laid the foundation for classical economics, but Ricardo expanded upon Smith's ideas, introducing the theory of comparative advantage and the law of rent. These two thinkers significantly shaped economic theory and policies in ways that are still relevant today. Their combined contributions helped establish the discipline of economics as both a social science and a field of practical study.
3. Is Alfred Marshall the father of economics?
Alfred Marshall is not considered the father of economics, but he is an important figure in the field. Marshall is known as the father of microeconomics and played a crucial role in developing neoclassical economics. His landmark book, "Principles of Economics" (1890), introduced key concepts such as price elasticity of demand and consumer surplus. While Adam Smith holds the title of the "father of economics," Marshall's work significantly advanced economic analysis, especially regarding individual markets and supply-demand relationships.
4. Who is called the mother of economics?
Economics does not have a universally recognized "mother" like Adam Smith is called the father. However, some scholars refer to the ancient Greek philosopher Xenophon as the "mother of economics" because his work, "Oeconomicus," explored household management. In modern times, Joan Robinson has been called the mother of modern economics, owing to her pioneering contributions to economic theory and Keynesian economics. While the title is less commonly used, these figures are sometimes mentioned due to their significant impact on economic thought and the development of economic analysis.
5. Why is Adam Smith called the father of economics?
Adam Smith is called the father of economics because he established many foundational concepts that define the discipline today. In his influential book, he developed the ideas of the invisible hand, division of labor, and free market mechanisms. His work showed how individual self-interest benefits society as a whole when markets function freely. Smith's theories provided a systematic approach to understanding economies, production, and trade. For these reasons, Adam Smith's ideas marked the beginning of economics as a structured, independent field of study.
6. What were Adam Smith's major contributions to economics?
Adam Smith introduced several major concepts that have shaped economic thought. His key contributions include:
- The invisible hand: the idea that individuals pursuing their own interests benefit society as a whole.
- Division of labor: increasing productivity by specializing in specific tasks.
- Free markets: advocating for minimal government interference in economic activities.
Smith's insights laid the foundation for classical economics and continue to influence modern economic policies and debates. His work remains a cornerstone in both theoretical and practical discussions within the field of economics.
7. How has the definition of economics changed since Adam Smith?
Since Adam Smith's time, the definition of economics has evolved to reflect new theories and societal changes. Originally, Smith defined economics as the study of wealth production and accumulation. Over time, economists like Alfred Marshall shifted the focus toward human well-being and resource allocation. Modern economics now emphasizes decision-making under scarcity, the allocation of resources, and maximizing utility. This broader perspective covers microeconomics, macroeconomics, and new branches like behavioral economics, showing how the discipline has grown beyond Smith's original view of wealth alone.
8. What is the invisible hand theory in economics?
The invisible hand theory, introduced by Adam Smith, explains how individuals pursuing their own self-interest unintentionally benefit society as a whole. Smith argued that when people act for personal gain, their choices in a free market lead to efficient allocation of resources. The market, without central direction, naturally coordinates supply, demand, and prices. This concept helped justify the benefits of competition and limited government interference in economic affairs. The invisible hand remains a key principle in market economics and is widely discussed in both classical and modern economic theory.
