(1723-1790) The founder of the econom. theory, Scottish philosopher and author of The Nature and Causes of the Wealth of Nations, a representative of classical political economy. The Wealth of Nations introduces an abundance of econ. data and their analysis against the background of generalization of trends in the development of econ. processes in a society based on private property. Adam Smith opposed the activities of the government, for the policy of non-interference of the state in the economy, for a departure from its interventionist policy recommended by the theory of mercantilism, which dominated for most of the eighteenth century Adam Smith believed that the econ. freedom is an effective means of regulating the economy. The invisible hand of the market was central to his teaching on economics. Competition and self-interest, to-rye give rise to the growth of the real nat. wealth was at the heart of his model. CAPITALISM; COMMUNISM; SOCIALISM.

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ADAM SMITH

Scottish philosopher (1723-1990), best remembered for his Study of the Causes and Nature of the Wealth of Nations (1776). After a fruitful study of the division of labor, he suggested that the individual's pursuit of self-interest and the smooth functioning of the market acted as an "invisible hand", resulting in the achievement of "general welfare." As a leading representative of Scottish education and visiting France, where he met with leading French social and economic thinkers, Smith, in addition to economic problems, wrote: about ethics, politics, law, language. In The Theory of Moral Sentiments (1779), he argued that ethical judgments depend on people's imagination of themselves in the position of others and can also be illuminated through the prism of judgments about the truth and error of the ideal impartial observer. While closely associated with the defense of the Laissez Faire doctrine, Smith was not blind to the adverse effects of the division of labor, noting its potentially disruptive and dehumanizing effects on workers, although they might well wish to limit such exposure, governments were in fact driven by narrow interests.

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ADAM SMITH

Scottish economist, whose work formed the basis of classical economic theory. The well-known work of A. Smith "Investigation of the nature and causes of the wealth of nations" (1776) laid the foundations of the doctrine of the market. Smith emphasized that market relations are based on the social division of labor. The scientist believed that the “invisible hand” of the market would force entrepreneurs, out of personal material interest and a desire for profit, to produce goods and services needed by society. In conditions of free competition and in the absence state regulation the market is able to organize economic activity in such a way that the welfare of the whole society will increase. In markets of perfect competition, manufacturers tend to sell as many goods as possible, which leads to lower prices to a level that allows them to cover production costs and get a normal rate of return. If there is a shortage of certain goods in the market, consumers offer higher prices for them, which attracts new producers to the industry and contributes to an increase in the supply of these goods. Thus, in a market system, supply is driven by demand. Smith actually described a new economic system that was emerging at that time in Western European countries. However, for this system to work, two conditions are necessary: ​​no government interference and free competition. Smith was highly distrustful of monopolies, believing that they were a conspiracy against the consumer. See Private-enterprise system.

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Adam Smith

Adam Smith(Adam Smith), considered by most scholars to be the founder of modern political economy as an independent science, was probably born on June 5, 1723 in the city of Kirkcaldy, Scotland, into the family of a customs official.

He graduated from the University of Glasgow and in 1740-1746 studied at Oxford, where he studied philosophy and literature.

He started his career as a teacher. In 1748-1750 he lectured on literature and natural law. In 1751 he was awarded the scientific degree of professor of logic, in 1752 - professor of moral philosophy. Contemporaries considered Smith an outstanding orator: listeners from all over the country came to his lectures.

In 1755, Adam Smith became a publicist: his first articles were published in the Edinburgh Review. And he gained international fame thanks to his philosophical work The Theory of Moral Sentiments, which was published in 1759.

From 1764 to 1766, Smith was mentor to the Duke of Beckle. In this role, he visited Toulouse, Geneva, Paris. He managed to get to know such prominent figures of the Renaissance as Diderot, Voltaire and others.

Upon his return to his homeland, Adam Smith devoted himself to work on his major work, A Study of the Nature and Causes of the Wealth of Nations, which was first published in 1776.

The Wealth of Nations is a five-book treatise, the first two being an outline of theoretical economics, the third and fourth about history economic doctrines, and the fifth is about the relationship between finance and management science.

It was in this work that for the first time selfishness was discussed as the main driving force economy, when the seller seeks to sell the product where it can be done more expensively; wealth is created by all kinds of productive labor, not just agriculture, and precious metals are not its only expression and equivalent.

In 1778 Smith became a member of the Scottish Customs Council. He moved to Edinburgh. And in 1787 he was elected rector of the University of Glasgow.

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Smith Adam (1723-1790)

English economist, one of the founders of classical political economy. In 1766 he created the main work of his life - "Investigation of the Nature and Causes of the Wealth of Nations", which is the first full-fledged work in economic science, setting out common framework science - the theory of production and distribution, analysis of the operation of these abstract principles on historical material and, a number of examples of their application in economic policy. This work of Smith influenced all subsequent development of economic thought in the world and the economic policy of many states. the main idea"Research on nature ..." is the action of the "invisible hand": we receive our bread not by the grace of the baker, but from his selfish interest. Smith put forward the doctrine of maximum satisfaction of needs, according to which, under certain social conditions, private interests can be harmoniously combined with the interests of society. He noted that the division of labor increases labor productivity, accelerates the growth of wealth and is an essential factor in the entire history of mankind. Smith considered it wrong for the mercantilists to view money as the only wealth; moreover, he declared it expedient to replace silver and gold with paper money. Along with this, he saw that, unlike metallic money, paper money can overflow circulation channels and become devalued, therefore, paper money must be issued by banks in limited quantities. Smith lent money and recognized that the issue of banknotes promoted the growth of production. Smith made significant contributions to the development of the theory of value. He determined the value of the labor expended on the production of a commodity and linked the exchange of commodities with the amount of labor contained in them. Smith distinguished between the natural and market price of a product. Under the natural price, he understood the monetary expression of value, which "seems to represent the central price to which the prices of all goods constantly gravitate," that is, the average price of goods determined by competition. Smith characterized the low level of the rate of profit and interest as an indicator of high economic development and "health of the nation", although he could not explain the process of the tendency of the rate of profit to decrease. He first introduced the terms fixed and working capital and applied the categories of fixed and working capital to all functioning capital, regardless of which industry it is used in. Smith attached particular importance to the financial activities of the state. He laid the theoretical foundations for tax policy, stressing that taxes should be consistent with "the strength and ability of citizens."

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SMITH ADAM

Adam (1723–90) - English economist, founder of classical political economy. Born in Scotland. As an exceptionally gifted student, at the age of 14, he entered the university. First in Glasgow, and then in Oxford (in 1740–46), he studied philosophy. The boy was greatly influenced by the courses on moral philosophy of Francis Hutcheson (1654–1746), as well as the works of David Hume (1711–76), and in particular his Treatise on Human Nature.

Upon his return to Scotland in 1751, S. received the chair of logic at the University of Glasgow. In 1752 he also received the chair of moral philosophy and thus became Hutcheson's successor. Political economy was dealt with in the fourth part of his course, after natural theology, ethics, and jurisprudence. So his economic concept becomes inseparable from reflections on society in all its diversity.

The first book, which brings him fame, is devoted to social philosophy: we are talking about the "Theory of moral feelings", published in 1759 S. considered it his main work, judging by the fact that the last years of his life he devoted it to reprints.

In 1764 he left his chairs at the University of Glasgow and became the mentor of the young Duke of Bucklough; he is assigned a pension, which he will receive for the rest of his life. Accompanying the young nobleman during a two-year study (1764–66) in Europe, and especially in France, S. meets with F. Quesnay and A.R.Zh. Turgot.

Returning to Scotland, S. took up "Studies on the nature and causes of the wealth of nations", which were published in 1777. The work was accompanied by great success, and during the life of the author it was reprinted four times (1778, 1784, 1786, 1789).

In 1778, S. was appointed a customs commissar. He died without having published his other works.

The Wealth of Nations is often seen as the introductory work of political economy and heralds the birth of liberal economic theory. The Wealth of Nations includes five books, but only the first two of them constitute the essence of S.

Book I examines the division of labor as a major factor in economic growth. Then the author poses the problem of the value of the goods and services produced. S. believes that it is labor that creates this value (the theory of value-labor). Book I ends with a theory of distribution that deals with wages, rent, and profit.

Book II focuses on the accumulation of capital necessary for economic growth and the importance of savings in enabling this accumulation.

In book IV, devoted to criticism of mercantilist positions, the author for the first time theoretically proves the need for free exchange (absolute advantage), the principles of which will then be finalized by D. Ricardo (comparative advantage).

Book V is about public finance. Analysis of state expenditures, conducted by S., to this day remains an unsurpassed achievement of liberal thought.

The main idea of ​​the book was to substantiate the labor theory of value, to prove that the source of wealth is labor in all spheres of production, and not only in agriculture, thanks to the costs of which the value is formed, and then the price of the commodity. It is pertinent to note that S., reflecting on the substance (basis) of value (labor or utility), did not immediately make a choice in favor of labor. He was inclined to this choice by reasoning about the benefits of water and diamonds. He asked himself the question, why is water, which is more useful for humans than diamonds, is valued so low? Unable to explain the value of water and diamonds by utility, he focused on the dependence of the cost of goods on labor costs. The fact is that S. did not yet know the difference between marginal and general utility. And the price is just connected not with the general, but with the marginal utility of the good. After all, it is not water or diamonds in general that are consumed, but a certain amount of them: liters or carats. And with an increase in the number of consumed units of good, the utility of an additional unit decreases. Since there is a lot of water, the consumption of a large number of units of water makes the marginal usefulness of water for each consumer low. This explains her low price... But with a lack of water, for example in a desert, the value of an additional unit of water can be much higher than the value of a unit of any precious stones. It was the desire to resolve the water-diamond paradox that pushed economics towards the discovery of ultimate analysis. It was only a century later that the authors of the theory of marginal utility found counterarguments against this "Smith paradox."

The enthusiasm for the ideas of S. was so great that, along with Napoleon, he was considered the most powerful ruler of thoughts in Europe. Under the influence of his ideas, a course in political economy was introduced, which was first taught at the University of Edinburgh by J. Stewart, a student and friend of S.

It is believed that the three postulates of S. still determine the vector of economic science. They form the S.

First, there is an analysis of the "economic man". This figurative expression denotes a model, or concept, of a person in economic theory. The habitat of the "economic man" is the work of economists. The relationship between the "economic person" and the person participating in real economic life is the relationship between theory and practice. Merit S. that he analyzed the model of "economic man" in relation to the industrial-market economy.

Secondly, it is the “invisible hand” of the market, which presupposes minimal government intervention and market self-regulation based on free prices that develop depending on supply and demand under the influence of competition.

The “invisible hand” is, in essence, a spontaneous action of objective economic laws. These laws operate in addition to, and often against the will of people. Having introduced in this form in science the concept of economic law, S. put political economy on a scientific basis.

Thirdly, this wealth as a target function and an object of economic relations.

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ADAM SMITH

As the English historian of economic thought Alexander Gray observed: Adam Smith was so clearly one of the great minds of the eighteenth century. and had such a huge impact in the 19th century. in our own country and around the world, which seems somewhat strange, our poor awareness of the details of his life ... His biographer is almost involuntarily forced to make up for the lack of material by writing not so much a biography of Adam Smith as the history of his time.

The birthplace of the great economist was Scotland. For several centuries the Scots fought stubborn wars with England, but under Queen Anne in 1707, a state union was finally concluded. This was in the interests of the English and Scottish industrialists, merchants and wealthy farmers, whose influence had noticeably increased by this time. After that, a significant economic development... The city and port of Glasgow grew especially rapidly, around which a whole industrial area arose. It was here, in the triangle between the cities of Glasgow, Edinburgh (the capital of Scotland) and Kirkcaldy (Smith's hometown), that almost the entire life of the great economist passed.

The influence of the church and religion on public life and science gradually diminished. The church lost control of the universities. Scottish universities differed from Oxford and Cambridge in the spirit of free thinking, the great role of secular sciences and practical bias. In this respect, the University of Glasgow stood out, where Smith studied and taught. The inventor of the steam engine, James Watt, and one of the founders of modern chemistry, Joseph Black, worked and were friends with him.

Around the 50s, Scotland entered a period of great cultural upsurge, which is found in different areas science and art. The brilliant cohort of talents that little Scotland has spawned over half a century looks very impressive. In addition to those named, it includes economist James Stewart and philosopher David Hume (the latter was Smith's closest friend), historian William Robertson, sociologist and economist Adam Ferguson. This was the environment, the atmosphere in which Smith's talent grew.

Adam Smith was born in 1723 in the small town of Kirkcaldy, near Edinburgh. His father, a customs official, died a few months before the birth of his son. Adam was the only child of a young widow, and she devoted her whole life to him. The boy grew up fragile and sickly, avoiding the noisy games of his peers. Fortunately, there was a good school in Kirkcaldy, and there were always many books around Adam - this helped him get a good education... Very early, at the age of 14 (this was the custom of the time), Smith entered the University of Glasgow. After compulsory for all students in the class of logic (first year), he moved to the class of moral philosophy, thereby choosing the humanitarian direction. However, he also studied mathematics and astronomy and was always distinguished by a fair amount of knowledge in these areas. By the age of 17, Smith had a reputation among students as a scientist and somewhat odd fellow. He could suddenly think deeply among a noisy company or start talking to himself, forgetting about those around him.

Successfully graduating from the university in 1740, Smith received a scholarship to further study at the University of Oxford. In Oxford, he spent almost six years without a break, noting with surprise that at the renowned university they teach almost nothing and cannot teach. Ignorant professors were engaged only in intrigue, politicking and spying on students. After more than 30 years, in The Wealth of Nations, Smith settled scores with them, causing an explosion of their rage. He wrote, in particular: At Oxford University, most professors for many years have completely abandoned even the appearance of teaching.

The fruitlessness of his further stay in England and political events (the uprising of the Stuart supporters in 1745-1746) forced Smith in the summer of 1746 to leave for Kirkcaldy, where he lived for two years, continuing to educate himself. At the age of 25, Adam Smith impressed with his erudition and depth of knowledge in various fields. The first expressions of Smith's special interest in political economy also date back to this time.

In 1751, Smith moved to Glasgow to take up a professorship at the university there. First, he received the department of logic, and then - moral philosophy. Smith lived in Glasgow for 13 years, regularly spending 2-3 months a year in Edinburgh. In old age, he wrote that this was the happiest period of his life. He lived in a familiar and familiar environment, enjoying the respect of professors, students and prominent citizens. He could work without hindrance, and much was expected of him in science.

As in the lives of Newton and Leibniz, women did not play any significant role in Smith's life. However, vague and unreliable information has survived that he twice - during his life in Edinburgh and in Glasgow - was close to getting married, but both times everything was upset for some reason. His mother and cousin have led his home all their lives. Smith survived his mother by only six years, and his cousin by two years. As one visitor who visited Smith recorded, the house was completely Scottish. National food was served, Scottish traditions and customs were observed.

In 1759 Smith published his first large treatise- The theory of moral feelings. Meanwhile, already in the course of work on the Theory, the direction of Smith's scientific interests changed noticeably. Deeper and deeper he was engaged in political economy. In commercial and industrial Glasgow, economic problems invaded life especially powerfully. There was a kind of political economy club in Glasgow, organized by the rich and enlightened mayor of the city. Smith soon became one of the most prominent members of this club. His acquaintance and friendship with Hume also increased Smith's interest in political economy.

At the end of the last century, the English economist Edwin Cannan discovered and published important materials that shed light on the development of Smith's ideas. These were taken by a student at the University of Glasgow, then lightly edited and rewritten notes of Smith's lectures. Judging by the content, these lectures were delivered in 1762-1763. From these lectures, it is first of all clear that the course in moral philosophy that Smith taught to students had by this time turned, in essence, into a course in sociology and political economy. In the purely economic sections of the lectures, one can easily discern the rudiments of ideas that have received further development in the Wealth of Nations. In the 30s of the XX century, another curious find was made: a sketch of the first chapters of the Wealth of Nations.

Thus, by the end of his stay in Glasgow, Smith was already a deep and original economic thinker. But he was not yet ready to create his main work. A three-year trip to France (as a tutor to the young Duke of Buckleu) and a personal acquaintance with the Physiocrats completed his training. We can say that Smith got to France just in time. On the one hand, he was already an established and mature enough scientist and person not to fall under the influence of the Physiocrats (this happened to many smart foreigners, not excluding Franklin). On the other hand, his system had not yet fully developed in his head: therefore, he was able to perceive the beneficial influence of F. Quesnay and A.R.J. Turgot.

France is present in Smith's book not only in ideas, whether directly or indirectly related to physiocracy, but also in a great variety of different observations (including personal ones), examples and illustrations. The general tone of all this material is critical. For Smith, France with its feudal-absolutist system and fetters for bourgeois development is the most striking example of the contradiction between the actual order and the ideal natural order. It cannot be said that everything is fine in England, but in general, its system is much closer to the natural order with its freedom of personality, conscience and - most importantly - entrepreneurship.

What did three years in France mean for Smith personally, in a human sense? First, a sharp improvement in his financial situation. By agreement with the parents of the Duke of Buckle, he was to receive 300 pounds a year, not only during travel, but as a pension until his death. This allowed Smith to work on just his book for the next 10 years; he never returned to the University of Glasgow. Secondly, all contemporaries noted a change in Smith's character: he became more collected, more efficient, more energetic and acquired a certain skill in dealing with different people including the mighty of the world this. However, he did not acquire a secular gloss and remained in the eyes of most of his acquaintances as an eccentric and absent-minded professor.

Smith spent about a year in Paris - from December 1765 to October 1766. Since the centers of the intellectual life of Paris were literary salons, he mainly communicated with philosophers there. One may think that the acquaintance with K.A.Helvetius, a man of great personal charm and remarkable intelligence, was of particular importance for Smith. In his philosophy, Helvetius declared selfishness to be a natural property of man and a factor in the progress of society. Associated with this is the idea of ​​natural equality of people: every person, regardless of birth and position, should be given an equal right to pursue his own benefit, and the whole society will benefit from this. Such ideas were close to Smith. They were not new to him: he perceived something similar from the philosophers J. Locke and D. Hume and from Mandeville's paradoxes. But of course, the flamboyance of Helvetia's argument had a special influence on him. Smith developed these ideas and applied them to political economy. Smith's idea of ​​the nature of man and the relationship between man and society formed the basis of the views of the classical school. The concept of homo oeconomicus (economic man) arose somewhat later, but its inventors relied on Smith. The famous statement about the invisible hand is one of the most cited fragments of the Wealth of Nations.

What is the economic man and the invisible hand? You can think of Smith's train of thought something like this. The main motive economic activity a person is self-interested. But a person can pursue his interest only by providing services to other people, offering in exchange his labor and products of labor. This is how the division of labor develops. Each individual person seeks to use his labor and his capital (as we see, both workers and capitalists can be meant here) in such a way that his product has the greatest value. At the same time, he does not think about the public benefit and does not realize how much he contributes to it, but the market leads him precisely to the place where the result of the investment of his resources will be appreciated by society above all else. The "invisible hand" is a beautiful metaphor for the spontaneous operation of objective economic laws.

The conditions under which the beneficial action of self-interested interest and the spontaneous laws of economic development is most effectively carried out, Smith called the natural order. For Smith, this concept has a kind of double meaning. On the one hand, this is the principle and goal of economic policy, that is, laissez faire policy, on the other, it is a theoretical structure, a model for studying economic reality.

In physics, useful tools for learning about nature are the abstractions of an ideal gas and an ideal liquid. Real gases and liquids do not behave ideally, or do so only under certain specific conditions. However, it makes a lot of sense to abstract from these violations in order to study the phenomena in their purest form. Something similar is the abstraction of economic man and free (perfect) competition in political economy. Science would not be able to study mass economic phenomena and processes if it did not make certain assumptions that simplify, model an infinitely complex and varied reality, and highlight the most important features in it. From this point of view, the abstraction of the economic man and free competition has played a vital role in economics.

For Smith, homo oeconomicus is an expression of the eternal and natural human nature, and laissez faire politics directly follows from his views on man and society. If the economic activity of each person ultimately leads to the good of society, then it is clear that this activity should not be hampered by anything. Smith believed that with the freedom of movement of goods and money, capital and labor, the resources of society will be used in the most efficient way.

The economic policy of the British government over the next century was, in a sense, the implementation of the Smith program.

Such an interesting story has survived. In the last years of his life, Smith was already famous. While in London in 1787, Smith came to the house of a distinguished nobleman. There was a large company in the living room, including the Prime Minister, William Pitt. When Smith came in, everyone stood up. According to his professorial habit, he raised his hand and said: Please sit down, gentlemen. Pitt replied: After you, Doctor, we are all your students here. Perhaps this is only a legend, but it is very believable. The economic policy of W. Pitt was largely based on the ideas of free trade and non-interference in the economic life of society, which Adam preached. Smith.

Translated works:

1. Smith A. Research on the nature and causes of the wealth of peoples. In 2 volumes. M .: Sotsekgiz, 1935

2. Smith A. Theory of moral feelings, or research experience about the laws governing judgments. SPb .: I.I. Glazunov, 1895.

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1. Life and scientific activity

2. The value of the economic works of A. Smith

3. Smith's interpretation of economic laws

Adam Smith Is a Scottish economist and philosopher, one of the largest representatives of classical political economy. He created the theory of labor value and substantiated the need for the possible liberation of the market economy from government intervention.

In his "Study on the nature and causes of the wealth of peoples" (1776) he summarized the century-old development of this direction of economic thought, considered the theory cost and distribution of income, and its accumulation, economic history Western Europe, views on economic policy, state finances. A. Smith approached economics as a system in which objective the laws cognizable. In life Adam Smith the book has withstood 5 English and several foreign editions and translations.

Life and scientific activity

Was born Adam Smith in 1723 in the small Scottish town of Kirkcaldy. His father, a petty customs official, died before the birth of his son. Mother gave Adam a good upbringing and had a huge moral influence on him.

At fourteen, Adam comes to Glasgow to study mathematics and philosophy at the university. The most vivid and unforgettable impressions left him with the brilliant lectures of Francis Hutchison, who was called "the father of speculative philosophy in Scotland in modern times." Hutchison was the first professor at the University of Glasgow to give his lectures not in Latin, but in ordinary spoken language, and without any records. His commitment to the principles of "reasonable" religious and political freedom unorthodox notions of a just and good Supreme Deity, caring for human happiness, displeased the old Scottish professors.

In 1740, by the will of circumstances - Scottish universities could annually send several students to study in Britain. Smith goes to Oxford. During this long journey on horseback, the young man did not cease to be amazed at the wealth and prosperity of this land, so unlike the frugal and restrained Scotland.

Oxford met Adam Smith inhospitable: the Scots, of whom there were quite a few, felt uncomfortable, subject to constant ridicule, indifferent, and even unfair treatment of teachers. Smith considered the six years spent here the most unhappy and mediocre in his life, although he read a lot and constantly studied on his own. It is no coincidence that he left the university ahead of schedule, and did not receive a diploma.

Smith returned to Scotland and, abandoning the intention of becoming a priest, decided to earn a livelihood literary activity... In Edinburgh, he prepared and delivered two courses of public lectures on rhetoric, literature and jurisprudence. However, the texts have not survived, and an impression of them can be made only from the memories and notes of some listeners. One thing is certain - these performances already brought Adam Smith the first fame and official recognition: in 1751 he received the title of professor of logic, and the next year - professor of moral philosophy at the University of Glasgow.

Probably, during those thirteen years that he taught at the university, Adam Smith lived happily - he, by nature a philosopher, was alien to political ambitions and the desire for greatness. He believed that happiness is available to everyone and does not depend on his position in society, and true pleasure is given only by satisfaction from work, peace of mind and bodily health. Smith himself lived to old age, retaining a clarity of mind and extraordinary diligence.

Adam was extremely popular as a lecturer. Adam's course, which consisted of natural history, theology, ethics, jurisprudence, and politics, attracted numerous listeners, even from distant towns. The very next day, new lectures were hotly discussed in the clubs and literary societies of Glasgow. Admirers of Smith not only repeated the expressions of their idol, but even tried to accurately imitate his manner of speaking, especially in absolutely accurate manner.

Meanwhile, Smith hardly resembled an eloquent orator: his voice was harsh, his diction was not very clear, at times he almost stuttered. There was a lot of talk about his absent-mindedness. Sometimes people around him noticed that Smith seemed to be talking to himself, and a slight smile appeared on his face. If at such moments someone called out to him, trying to involve him in a conversation, he immediately began to rant and did not stop until he laid out everything he knew about the subject of discussion. But if someone expressed doubts about his arguments, Smith immediately retracted what he had just said and with the same fervor persuaded him of the exact opposite.

A distinctive feature of the scientist's character was gentleness and compliance, reaching some timidity, probably due to the female influence under which he grew up. Until almost his last years, he was carefully looked after by his mother and cousin. Adam Smith did not have any other relatives: they said that after the disappointment suffered in his early youth, he forever abandoned the thought of marriage.

His penchant for solitude and a quiet, withdrawn life caused the complaints of his few friends, especially the closest of them, Hume. Smith became friends with the famous Scottish philosopher, historian and economist David Hume in 1752. In many ways, they were similar: both were interested in ethics and political economy, had an inquisitive mindset. Some of Hume's brilliant guesses were further developed and embodied in the writings of Smith.

In their friendly union, David Hume undoubtedly played a leading role. Adam Smith did not possess considerable courage, which was revealed, among other things, in his refusal to take upon himself, after Hume's death, the publication of some of the latter's works, which had an anti-religious character. Nevertheless, Smith was a noble nature: full of striving for the truth and the high properties of the human soul, he fully shared the ideals of his time, on the eve of the Great French Revolution.

In 1759, Adam Smith published his first essay, which brought him wide fame - The Theory of Moral Sentiments, where he sought to prove that a person has a feeling of sympathy for others, which prompts him to follow moral principles. Immediately after leaving work Hume wrote to a friend with his characteristic irony: “Indeed, nothing can hint more at error than the approval of the majority. I move on to present the sad news that your book is very unhappy because it has earned undue admiration from the public. "

The Theory of Moral Sentiments is one of the most remarkable works of ethics in the eighteenth century. Continuing principally Shaftesbury, Hutchinson, and Hume, Adam Smith developed a new ethical system that represents a major step forward from those of his predecessors.

A. Smith became so popular that soon after the publication of The Theory he received from the Duke of Buckley to accompany his family on a trip to Europe. The arguments that forced the respected professor to leave the university department and the usual social circle were weighty: the duke promised him £ 300 a year, not only during the trip, but also after, which was especially attractive. Constant until the end of life eliminated the need to earn a livelihood.

The journey lasted almost three years. Great Britain they left in 1764, visited Paris, Toulouse, other cities in southern France, Genoa. The months spent in Paris were remembered for a long time - here Adam Smith met almost all the outstanding philosophers and writers of the era. He saw D "Alambert, Helvetius, but especially became close to Turgot - a brilliant economist, the future Comptroller General of Finance. French did not prevent Smith from talking with him for a long time about political economy. In their views there was a lot of common ideas of free trade, restriction of interference states into the economy.

Returning to his homeland, Adam Smith retires in the old parental home, devoting himself entirely to work on the main book of his life. About ten years passed almost completely alone. In his letters to Hume, Smith mentions long walks along the seashore, where nothing interfered with reflections. In 1776, "A Study on the Nature and Causes of the Wealth of Nations" was published - a work that combines an abstract theory with a detailed description of the features of development trade and production.

With this last work, Smith, according to the then widespread opinion, created new science- political economy. The opinion is exaggerated. But no matter how one evaluates the merits of Adam Smith in the history of political economy, one thing is beyond doubt: no one, neither before nor after him, played such a role in the history of this science. "The Wealth of Nations" is an extensive treatise of five books, containing an outline of theoretical economics (1-2 books), the history of economic doctrines in connection with the general economic history Europe after the fall of the Roman Empire (3-4th books) and financial science in connection with the science of management (5th book).

The main idea of ​​the theoretical part of "The Wealth of Nations" can be considered the provision that the main source and factor of wealth is human labor - in other words, the person himself. The reader encounters this idea on the very first pages of Smith's treatise, in the famous chapter On the Division of Labor. The division of labor, according to Smith, is the most important engine of economic progress. As a condition that puts a limit on the possible division of labor, Smith points to the vastness of the market, and by this he elevates the whole teaching from a simple empirical generalization, expressed by the Greek philosophers, to the degree of scientific of the law... In his doctrine of value, Smith also highlights human labor, recognizing labor as a universal measure of exchange value.

His criticism of mercantilism was not an abstract reasoning: he described the economic system in which he lived and showed its unsuitability for new conditions. Probably, the observations made earlier in Glasgow, then still a provincial city, gradually turned into a major commercial and industrial centre... According to the apt remark of one of his contemporaries, here after 1750 "there was not a single beggar to be seen on the streets, every child was busy with business."

Adam Smith was not the first to seek to debunk economic misconceptions politicians mercantilism, which implied artificial encouragement the state separate industries, but he was able to bring his views into a system and apply it to reality. He defended freedom trade and non-interference of the state in the economy, because I believed: only they will provide the most favorable conditions for obtaining the greatest profit, and therefore will contribute to the prosperity of society. Smith believed that the functions of the state should be reduced only to the defense of the country from external enemies, the fight against criminals and the company of those economic activities that are beyond the power of individuals.

The originality of Adam Smith was not in particulars, but in general, his system was the most complete and perfect expression of the ideas and aspirations of his era - the era of the fall of the medieval economic system and the rapid development of the capitalist economy. Smith's individualism, cosmopolitanism, and rationalism are in perfect harmony with the philosophical worldview of the 18th century. His fervent belief in freedom is reminiscent of the revolutionary era of the late 18th century. The same spirit is imbued with Smith's attitude towards the working class and the lower classes of society. In general, Adam Smith is completely alien to that conscious defense of the interests of the upper classes, the bourgeoisie or the landowners, which characterized the social position of his students in later times. On the contrary, in all cases where the interests of workers and capitalists come into conflict, he energetically takes the side of the workers. And yet Smith's ideas served the bourgeoisie. In this irony of history, the transitional nature of the era is reflected.

In 1778, Adam Smith was appointed a member of the Scottish Customs Board. Edinburgh became his permanent residence. In 1787 he was elected rector of the University of Glasgow.

Now arriving in London, after the publication of The Wealth of Nations, Smith was met with a resounding success and public admiration. But William Pitt the Younger became an especially enthusiastic admirer of him. He was not even eighteen when Adam Smith's book was published, which greatly influenced the formation of the views of the future prime minister, who tried to put into practice the main principles of Smith's economic theory.

In 1787, Smith made his last visit to London - he was supposed to attend a dinner where many famous politicians.

Smith was the last to arrive. Immediately everyone rose to greet the distinguished guest. “Sit down, gentlemen,” he said, embarrassed by the attention. "No," said Pitt, "we will stay standing until you sit down, because we are all your students." "What an extraordinary man Pitt," Adam Smith later exclaimed, "he understands my ideas better than I do myself!"

Recent years have been painted in gloomy, melancholic tones. With the death of his mother, Smith seemed to have lost the will to live, the best was left behind. Honor has not replaced departed friends. On the eve of his death, Smith ordered all unfinished manuscripts to be burned, as if once again recalling his contempt for vanity and worldly vanity.

Adam Smith died in Edinburgh in 1790.

Shortly before his death, Smith apparently destroyed almost all of his manuscripts. The surviving was published in the posthumous Experiments on Philosophical Subjects (Essays on Philosophical Subjects, 1795).

The value of A. Smith's economic works

In the process of studying the main issue of this essay, I looked at several, in my opinion, the most suitable sources. In these books I found many often completely contradictory opinions about the role and place of Smith's teachings in economics.

K. Marx, for example, characterized A. Smith in the following way: “On the one hand, he traces the internal connection of economic categories, or the hidden structure of the bourgeois economic system. competition ... ". According to Marx, the duality of Smith's methodology (which Karl Marx was the first to point out) led to the fact that not only "progressive economists who sought to discover the objective laws of the movement of capitalism, but also apologetic economists who tried justify the bourgeois system by analyzing the external appearance of phenomena and processes".

The assessment of Smith's works, which is given by S. Gide and S. Rist, is noteworthy. It is as follows. Smith borrowed all the important ideas from his predecessors in order to "pour" them into a "more general system". By getting ahead of them, he rendered them useless, since Smith replaced their fragmentary views with true social and economic philosophy. Thus, these views receive in his book completely new value... Rather than remaining isolated, they serve to illustrate a general concept. From her, they, in turn, borrow more light. Like almost all great "writers", A. Smith, without losing his originality, could borrow a lot from his predecessors ...

And the most interesting opinion about Smith's works, in my opinion, was published by Blaug M .: "You should not portray Adam Smith as the founder of political economy. This honor can be awarded with much greater reason to Cantillon, Quesnay and Turgot. , "Reflections" by Turgot are at best lengthy brochures, dress rehearsals of science, but not yet science itself. "Investigation of the Nature and Causes of the Wealth of Nations" is the first full-fledged work in economic science, setting out the general basis of science - the theory of production and distribution , then an analysis of the operation of these abstract principles on historical material and, finally, a number of examples of their application in economic policy, and all this work is imbued with the lofty idea of ​​"an obvious and simple system of natural freedom", to which, as it seemed to Adam Smith, the world is leading " ...

The central motive - the soul of the "Wealth of Nations" - is the action of the "invisible hand". The idea itself, in my opinion, is quite original for the 18th century. and could not be ignored by Smith's contemporaries. However, already in the XVIII century. the idea of ​​natural equality of people took place: every person, regardless of birth and position, should be given an equal right to pursue his own benefit, and the whole society will benefit from this.

Adam Smith developed this idea and applied it to political economy. The idea of ​​human nature and the relationship between man and society, created by the scientist, formed the basis of the views of the classical school. The concept of "homo oeconomicus" ("economic man") arose somewhat later, but its inventors relied on Smith. The famous phrase about the "invisible hand" is perhaps the most frequently quoted passage from The Wealth of Nations. Adam Smith was able to guess the most fruitful idea that under certain social conditions, which we today describe by the term "working", private interests can indeed be harmoniously combined with the interests of society.

Historically, almost everywhere the formation of economic science is most often linked to the name and work of Adam Smith (1723-1790), the greatest English scientist and economist of the late 18th century. This "human weakness" will obviously not be overcome soon, because unlike natural sciences, requiring, as a rule, an understanding of modern level knowledge, economic science can hardly be comprehended without getting acquainted with the theoretical views of prominent economists of classical political economy. Among them, Adam Smith is undoubtedly the central figure. And although economics really does not begin with this author, it was he, as M. Blaug said, who became the one who created "the first full-fledged work in economic science, setting out the general basis of science."

Adam Smith was born on June 5, 1723 in Scotland in the town of Kirkold, located not far from its capital Edinburgh, to the family of a customs official. From childhood, showing aptitude for study, at the age of 14 he entered Glasgow University, which he graduated three years later, in 1740, among the best students, he was awarded a scholarship to complete his education at Oxford University, where he studied until 1746. Teaching level here he did not suit him, including for the reason that most of the professors did not even read their lectures. From Oxford, A. Smith returned to Edinburgh with the intention of engaging in self-education and reading public lectures on English literature and political economy. Even then, judging by his lectures, he adhered to the principles of economic liberalism, and especially the principle of free trade. In 1751 A. Smith was appointed professor of logic at Glasgow University, and at the end of the same year he moved to the department of moral philosophy, where he taught until 1764. His major scientific work The Theory of Moral Sentiments, published by him in 1759, brought him wide fame. But in the future scientific interest A. Smith is increasingly confused with economic science, which was partly due to his active participation in a kind of Glasgow club of political economy, and partly - his friendship with the philosopher and economist David Hume.

In 1764, a turning point occurred in the life of A. Smith: he left the department (as it turns out, forever) and accepted the offer to accompany the young lord, stepson of a prominent politician, the Duke of Buckle, during his trip abroad. The material interest from this trip was not of the last importance for A. Smith; the trip guaranteed him £ 800. annually until the end of his life, which was clearly more than his professorial fee. The journey lasted from 1764 to 1766, i.e. more than two years, of which he spent a year and a half in Toulouse, two months in Geneva, where he met Voltaire, and nine months in Paris. A close acquaintance during the trip with the French philosophers d "Alambert, Helvetius, Holbach, as well as with the physiocrats, including A. Turgot, was subsequently reflected in his main work"Investigation of the nature and causes of the wealth of nations", to which he started back in Toulouse.

Upon his return to Scotland, A. Smith decides to settle with his mother, where since 1767 he has retired to complete work on The Wealth of Nations. The book was published in 1776 and strengthened the already widespread popularity of its author. It was reprinted four times during the lifetime of A. Smith and three more times from the day of his death (1790) until the end of the century.

The influence of A. Smith on his contemporaries was so great that even the British Prime Minister, W. Pitt the Young, declared himself to be his pupil. They met several times and discussed a number of financial projects together. One of the results of these contacts with the scientist was the signing by W. Pitt in 1786 of the first Liberal trade agreement with France - the Eden Treaty, which significantly changed customs tariffs. As a result of the influence of the creative heritage of the author of The Wealth of Nations, one of his students, Dougall Stewart, in 1801 began to teach an independent course in political economy at the University of Edinburgh, which was previously part of the disciplines of the course of moral philosophy.

In January 1778 A. Smith was appointed Commissioner of Customs at Edinburgh, remaining in this position until his death in 1790.

It is known from the character traits of A. Smith that he was characterized by emphatically delicate behavior and, at the same time, legendary absent-mindedness.

A. Smith's subject and method of study

Let us begin our acquaintance with the work of A. Smith with what he understood by the subject of study of economic science.

In his book "Investigation of the Nature and Causes of the Wealth of Nations" (1776), in this capacity, he singled out its central problem, namely the economic development of society and an increase in its welfare.

According to N. Kondratyev, "the entire classic work of Smith on the wealth of nations is written from the point of view of what conditions and how lead people to the greatest prosperity, as he understood it."

The very first words with which the book begins: "The annual labor of every nation is an initial fund that provides it with all the products necessary for the existence and convenience of life," make it possible to understand that the economy of any country, according to Smith, while developing, does not increase the wealth of the people. because this wealth is money, but because it must be seen in the material (physical) resources that "the annual labor of each nation" delivers.

Thus, A. Smith in the very first sentence of his book condemns mercantilist thinking, putting forward for this, it would seem, is not a new argument that the essence and nature of wealth is exclusively labor. Further, he develops this idea with a very interesting concept of the growth of the division of labor, and in fact with the doctrine of technical progress as the main means of increasing the wealth of "any country at all times."

However, on the question of in which area of ​​the economy wealth is growing faster, A. Smith's considerations turned out to be controversial. On the one hand, in his theory of productive labor (this will be discussed below), he convinces the reader that not trade and other branches of the sphere of circulation, but the sphere of production, is the main source of wealth, and on the other - this is especially evident in the second book his five books, - what to increase wealth, the development of agriculture is preferable, rather than industry, for, according to the scientist, the capital invested in agriculture adds much more value to real wealth and income. At the same time, L. Smith believed that with the development of the economy, prices for industrial goods tend to decrease, and for agricultural products - to rise, therefore, in his opinion, in countries where agriculture is the most profitable of all capital applications, the capital of individuals will be applied in the most beneficial way for the whole society. It is all the more difficult to understand this omission of the author of The Wealth of Nations, since at that time the manufacturing industry flourished in England and the first highly productive factories, powered by a water wheel, began to appear. Therefore, hardly BUT. Smith can be considered a "bourgeois scientist" or an "apologist for the bourgeoisie" if he argued about the role of landowners in society as follows: “The interests of the first of these three classes (landowners) are closely and inextricably linked to the general interests of society. Anything that favors or harms the interests of the former inevitably favors or harms the interests of society. "

Meanwhile, the greatness of A. Smith as a scientist lies in his economic forecasts and fundamental theoretical and methodological positions, which for more than a century predetermined both the subsequent economic policy of many states and the direction of scientific search for a huge cohort of economic scientists. To explain the phenomenon of A. Smith's success, first of all it is necessary to turn to the peculiarities of his methodology.

The central place in the research methodology of A. Smith is economic liberalism concept, which, like the physiocrats, he based on idea of ​​natural order, i.e. market economic relations. At the same time, in contrast to, say, F. Quesnay in the understanding of A. Smith, and he constantly emphasizes this, market laws can best influence the economy when private interest is above public interest, i.e. when the interests of society as a whole are considered as the sum of the interests of its constituent persons. In the development of this idea, the author of "The Wealth of Nations" introduces the concepts that later became famous "Economic man" and "Invisible hand".

The essence of the "economic man" is highlighted in the article of the site, where the position that the division of labor is the result of a certain inclination of human nature to trade and exchange is especially impressive. Reminding the reader at the beginning that dogs do not consciously change bone with each other, A. Smith characterizes the "economic man" as a perfect egoist striving for personal enrichment, namely: "He will sooner achieve his goal if he turns to them (his neighbors. I. I.) selfishness and will be able to show them that it is in their own interests to do for him what he requires of them. Anyone proposing a deal of any kind to another is proposing to do just that. Give me what I need and you will get what you need - that is the meaning of any such proposal. It is not from the benevolence of a butcher, brewer, or baker that we expect to receive our meal, but from their self-interest. We do not appeal to their humanity, but to their selfishness, and we never tell them about our needs, but about their benefits "

The tendentiousness of the concept of Smith's "economic man" is mentioned quite often in modern economic literature. For example, according to L. Mises, after A. Smith, economic science up to our time in essence "studies not living people, but the so-called" economic man ", a phantom that has little in common with real people. The absurdity of this concept, - he continues, - becomes quite obvious as soon as the question arises about the differences between a real person and an economic one. The latter is seen as a complete egoist, aware of everything in the world and focused solely on the accumulation of more and more wealth. "

Without any special comments, A. Smith presents the reader with the proposition of the “invisible hand”. At the same time, it cannot be ruled out that the author of The Wealth of Nations borrowed the idea of ​​it in the pamphlets of the 17th century mercantilists, which suggested that economic behavior primarily predetermines profit, and for this the state needs to protect free competition in the selfish interests of domestic entrepreneurs.

But A. Smith does not in the least repeat the mercantilists. In his book, the meaning of the "invisible hand" is to promote social conditions and rules under which, thanks to the free competition of entrepreneurs and through their private interests, the market economy will best solve social problems and lead to harmony of personal and collective will with the greatest possible benefit for all and everyone. He talks about it as if by the way, drawing the reader's attention to the fact that “each individual person has in mind his own benefit, and not at all the benefits of society, and in this case, as in many others, he is guided by an invisible hand towards the goal , which was not at all part of his intentions ", and that," in pursuit of his own interests, he is often more efficiently serves the interests of society than when it deliberately seeks to do so. "

In other words, the “invisible hand”, regardless of the will and intentions of the individual - the “economic man” - directs him and all people to the best results, benefit and higher goals of society, thus justifying, as it were, the desire of an egoist person to put personal interest above public interest. ... Thus, Smith's “invisible hand” presupposes such a relationship between the “economic person” and society, ie. "Visible hand" government controlled when the latter, without opposing the objective laws of the economy, ceases to restrict exports and imports and act as an artificial obstacle to the "natural" market order. Consequently, the market mechanism of management, and according to Smith - "an obvious and simple system of natural freedom", thanks to the "invisible hand" will always be automatically balanced. In order to achieve legal and institutional guarantees and to define the boundaries of its non-interference, the state, as A. Smith writes, “has three very important responsibilities”. He refers to them: the costs of public works (to "create and maintain certain public buildings and public institutions", to provide remuneration for teachers, judges, officials, priests and others who serve the interests of "the sovereign or the state"); military security costs; the costs of the administration of justice, including the protection of property rights, ie, in the words of N. Kondratyev, Smith's “social and economic system is based on the play of private interests within and under the protection of law”.

So, “in every civilized society” there are omnipotent and inevitable economic laws - this is the leitmotif of L. Smith's research methodology. The commitment to this idea was then evident in the writings of all best representatives classical political economy, including D. Ricardo, who declared the main task of economics to be the need to "study the laws that govern" everything that is produced on earth, as well as K. Marx, who puzzled himself with the study of the "laws of movement of capitalism."

An indispensable condition for economic laws to operate is, according to A. Smith, free competition. Only she, he believes, can deprive market participants of power over the price, and the more sellers, the less probable monopoly, because, according to the scientist, monopolists, maintaining a constant shortage of products on the market and never fully satisfying the actual demand, sell their goods much more expensive than the natural price and raise their income. In Defense of the Ideas of Free Competition in Chapter 10 of Book I

A. Smith condemns the exclusive privileges of trading companies, apprenticeship laws, shop orders, laws on the poor, believing that they (laws) restrict the labor market, labor mobility and the scale of competition. He is also convinced that once representatives of the same trade and craft get together, their conversation rarely ends with a conspiracy against the public or some kind of agreement to raise prices.

Above, we have already noted the position of A. Smith, according to which the first source of wealth is agricultural production and only then industrial. This is probably due to his reaction to the maxims of the mercantilists, who prioritized foreign trade, and then national industry. But as for structures the most trade, then here, too, the author of The Wealth of Nations makes his own accents, which are opposite to the principles of mercantilism, putting domestic trade first, foreign trade second, and transit trade third. In the last part, A. Smith's arguments are as follows: a large number of productive stock in this country and increases the value of its annual product by a greater measure than capital of the same size engaged in foreign trade in consumer goods, and the capital employed in this latter has in both these respects an even greater advantage over the same amount of capital invested in transit trade ". In this connection, A. Smith even considered it appropriate to formulate the main task of political economy as follows: “And the main task of the political economy of each country is to increase its wealth and power; therefore, it should not give preference or give special encouragement to foreign trade in consumer goods, preferably over domestic trade, or transit trade, preferably over both. "

Features of the theoretical developments of A. Smith

A. Smith's "Wealth of Nations" begins with the problem of division of labor not by accident. With this textbook example showing how division of labor in the pin manufactory at least threefold * increases productivity, he actually paved the way for future speculation and debate on many of the key theoretical issues of political economy.

One of these theories, which had an ambiguous interpretation even before L. Smith, was the theory of the value (value) of goods and services. This theory was subsequently up to late XIX in. remained the central theory of economics.

Let's get acquainted with the theory of value of A. Smith, around which his followers and opponents argued most of all. Noting the presence of use and exchange value for each commodity, A. Smith left the first without consideration. The reason here is that the concept "Use value" A. Smith put the meaning of utility not as marginal, but complete, i.e. the possibility of a separate object, good to satisfy a person's need, and not specific, but general. Therefore, for him, the use-value cannot be a condition for the exchange value of the commodity.

As M. Blaug noted in this regard, “at the time of Smith, the theory of value based on the concept of utility was rejected, since it seemed impossible to establish a quantitative relationship between utility and price - this difficulty was simply not thought about. Rather, at that time they simply did not see the connection between utility in the sense in which we understand it, and price (cost. - Ya. Ya.) ".

Having dissociated himself from the consideration of use value, A. Smith turns to elucidating the causes and mechanism of exchange, the essence exchange value. He notes that since goods are most often exchanged, "it is more natural to evaluate their exchange value by the quantity of a commodity, rather than the amount of labor that can be bought with them." But already on the next page, the author of "The Wealth of Nations" also refuted the version of the definition of value by the "quantity of some commodity", stressing that "a commodity that itself constantly fluctuates in its value can in no way be an exact measure of the value of other goods." Then A. Smith declares that the value of the same amount of labor of the worker "at all times and in all places" is the same and therefore "it is labor that constitutes their real price, and money is only their nominal price."

As for Smith's maxim about the constancy of the cost of labor, which, in essence, means the condition for the production of each unit of goods at constant costs, then it, of course, does not stand up to criticism, since, depending on the volume of production, unit costs are known to be subject to change. And another one thesis that labor “isthe actual price "of goods, A. Smith develops from dual positions, Following which some Smithians subsequently saw the "labor" nature of the origin of the value of goods, while others - through costs. The very same duality of positions is as follows.

The author of "The Wealth of Nations" allegedly made the final conclusion, saying that "labor is the only universal, as well as the only exact, measure of value or the only measure by which we can compare the values ​​of various goods at all times and in all places" ... But literally a few pages later, two clarifications followed. In accordance with the first of them - only "in a primitive and underdeveloped society, which preceded the accumulation of capital and the conversion of land into private property, the ratio between the quantities of labor was, apparently, the only basis for their exchange for each other." In accordance with the second specification, value is defined as the sum of incomes (wages, profits and rent), since, as the scientist writes, “in every developed society, all these three constituent parts, to a greater or lesser extent, are included in the price of the vast majority of goods”.

So, according to the above clarifications related to the theory of value (value), one would assume that L. Smith was inclined not to the labor theory, but to the theory of costs. But there is no doubt about the ambiguity of his position when, in Chapter 8 of Book 1, he states that the labor origin of all income from which the flail is composed, and not about the sum of the costs that determine these incomes as components of prices. Indeed, according to the author of The Wealth of Nations, rent is “the first deduction from the product of labor expended on cultivating the land”; profit - "the second deduction from the product of labor spent on cultivating the land"; wages are a "product of labor" that "constitutes a natural remuneration for labor."

Among the theoretical problems covered by A. Smith, one cannot ignore his concept of productive labor. This is important, even though modern economics rejects its basic postulates. The fact is that the author of "The Wealth of Nations" introduces in Chapter 3 of Book II the concept of productive labor, formulating it as a pile that "increases the cost of the materials that it recycles", and also “Is fixed and realized in any separate item or product which can be sold and which exist, at least, some time after the labor is smoked ". Accordingly, unproductive labor, according to Smith, is services that “disappear at the very moment of their provision,” and the labor for the performance (rendering) of which “adds nothing to value, has its own value and deserves remuneration, is not fixed and is not realized in any particular item or product suitable for sale. "

Unfortunately, almost all economists of classical political economy (except J. McCulloch, N. Senior and some others) unconditionally accepted Smith's division of labor into productive and unproductive types, which then passed from Karl Marx into the so-called Marxist-Leninist political economy ... In that main reason the fact that in the Soviet Union "the source of the creation of the national income was considered labor employed in the sphere of material production."

Meanwhile, the difference between productive and unproductive labor according to the principle: whether a given type of labor creates or does not create a tangible material product (object) has more than just an ideological and political significance. This, in particular, is especially convincing by the arguments of the English economist Lionel Robbins in his book "Essays on the Nature and Significance of Economic Science" (1935).

In the chapter "The Subject of Economic Science" of this work, L. Robbins writes, for example, that "modern theory is so far removed from the point of view of Adam Smith and the physiocrats that it does not recognize as productive even labor that creates material objects if the latter have no value." In his opinion, even “the work of an opera singer or ballet dancer” should be considered “productive” because it is valued because it has a specific value for various “economic agents”, because, the scientist continues, “the services of a ballet dancer are part of the wealth and economics examines the pricing of them in the same way as, for example, the services of a cook. "

This is probably why M. Blaug made a very hard-hitting conclusion about the theory of productive labor of the author of The Wealth of Nations, stating the following: “The distinction between productive and unproductive labor, introduced by Smith, is perhaps one of the most pernicious concepts in the history of economic thought. ... But with all the critical attitude to the presentation of this idea, Smith must admit that it is in no way ambiguous or absurd. "

Money theory A. Smith does not stand out for any new provisions. But, like his other theories, it attracts with the scale and depth of analysis, logically reasoned generalizations. In Chapter 5 of Book I, he notes that money has become a common means of trade since "the exchange trade ceased," but "like all other commodities, gold and silver change in value." Then, in Chapter 11 of Book I, we see a historical and economic digression in favor of the quantitative theory of money. Here, in particular, it is said that "labor, and not any particular commodity or group of commodities, is the actual measure of the value of silver." ; the mercantilist system of views is condemned, according to which "national wealth consists in an abundance of gold and silver, and national poverty is in their insufficient quantity."

However, A. Smith dedicated the second chapter of Book II especially to the problem of money. It is in it that one of his catchphrases is contained: "Money is the great wheel of circulation." And the proposition expressed in this chapter that "the fall in the rate of paper money below the value of gold and silver coins does not by any means cause a fall in the value of these metals", of course, is not without interest for the reader in our time. Finally, it should be emphasized that the author of The Wealth of Nations considers money, like all classics, not otherwise as a technical tool for exchange, trade, putting in the first place their function as a means of circulation.

If speak about income theory, then it is obvious that A. Smith it is based solely on the class approach. According to Smith, the annual product is distributed among three classes (workers, capitalists and landowners). At the same time, as noted above, he considered the economic well-being of the country to be dependent mainly on the activities of landowners, and not industrialists. But in fairness, it should be noted the remark of M. Blaug that the first in the eyes of A. Smith, "certainly moths."

Workers' income, wage, in Smith's consideration, it is directly dependent on the level of the country's national wealth. The merit of his theory of wages lies first of all in the fact that, unlike, say, U. Pstti, physiocrats, and then R. Ricarlo, he denied the so-called pattern of lowering wages to the level of the subsistence minimum. Moreover, in his conviction, "in the presence of high wages, we will always find workers more active, diligent and intelligent than with low wages." Unless, warns the author of The Wealth of Nations, "the owners are always and everywhere in a kind of tacit, but constant and uniform strike in order not to raise workers' wages above their existing size."

Profit how income per captain is determined, writes A. Smith in Chapter 9 of Book I, “by the value of the capital used in business, and it can be more or less depending on the size of this capital” and should not be confused with wages, established “in accordance with the amount, the severity or complexity of the proposed supervision and management work. " In his opinion, the sum of the profits of the "entrepreneur risking his capital" is a part of the value created by the workers, directed "to pay the profits of their entrepreneur for all the capital that he advanced in the form of materials and wages."

Another type of income - rent, the article is specially devoted. Rent, of course, has been much less studied than, say, by D. Ricardo, but certain provisions still deserve attention. In particular, according to Smith, food is "the only agricultural product that always and necessarily provides some rent to the landowner." His hint to the reader is also original here: "The desire for food is limited in each person by the small capacity of the human stomach."

IN capital theory A. Smith (chapter 1 books II), his more progressive position is obvious in comparison with. Capital is characterized by it as one of two parts of reserves,"From which they expect to receive income," and "the other part," he writes, "is the one that goes to direct consumption." Unlike the physiocrats, according to Smith, capital is productive, which is employed not only in agriculture, but also in the entire sphere of material production. Moreover, they the division of capital into fixed and circulating capital is introduced, shows the difference in the ratio between these parts of capital depending on the branch of the economy. The fixed capital - and it is not superfluous to note - according to the author of The Wealth of Nations, consists, among other things, “of the acquired and useful abilities of all residents or members of society,” that is, as it were, includes "human capital".

Did not remain unaffected by A. Smith and reproduction theory, brilliantly first introduced into scientific circulation by F. Quesnay. It is known that Karl Marx critically assessed A. Smith's position on this issue and called it "The fabulous Smith dogma." Karl Marx's criticism on this score is really significant, since the author of The Wealth of Nations, characterizing what constitutes the “entire price of an annual product of labor” to be distributed, completely reduces the latter to incomes, which, as he believes, make up the price of a commodity. At the same time, he declares: "The price of any commodity in the final analysis must still be reduced to all these three parts, since any part of the price must necessarily turn out to be someone's profit." In other words, according to Smith, we are not talking about expanded, but about simple reproduction, in which consumption excludes accumulation for the replacement of the value (depreciation) of the means of production.

State: Scotland, UK

Field of activity: Philosophy

Adam Smith (1723-1790) - Scottish social philosopher and pioneer of classical economics. He is known for his work The Wealth of Nations, which laid the foundation for a free market economy. Despite the fact that he is often called the champion of capitalism and the policy of laissez-faire, he also spoke about the need to limit free capitalism and considered his most important work "Theory of Moral Sentiments." In this work, Smith spoke about the importance of human empathy as a key element of public morality. Smith was a close friend of David Hume, and together they formed a key core of the Scottish Enlightenment.

Biography

Adam Smith was born on June 5, 1723 in Kirkcaldy, Scotland. After studying at the Burg School, Smith entered the University of Glasgow, where he studied moral philosophy. He completed his studies with honors and received a scholarship to attend Balliol College, Oxford University. However, after a short time, Smith became disillusioned with Oxford. He counted educational standards obsolete and argued that most of the teachers were not interested in the process of their work.

As a result, Smith returned to Scotland, where he began lecturing in Edinburgh, after which he took up a post at the University of Glasgow. From 1751 he was professor of moral philosophy at Glasgow. His teachings and lectures became widely known and attracted students from all over Europe.

Friendship with the philosopher David Hume

In 1750, Smith met the philosopher David Hume. Sharing similar beliefs about freedom of speech and philosophy, the two intellectuals soon became friends, and this friendship played an important role in the life of Adam Smith.

The concept of empathy may seem at odds with Smith's later work on economics, which emphasized that selfish pursuits are conducive to greater good and faster human development. However, Smith knew that an increase in the welfare of society as a whole contributes to an increase in the welfare of each individual in particular. In addition, his concept was able to fit into various aspects of human life. For example, in the case of division of labor in the design of a plant. Human compassion for Smith was an important element of civic consciousness in the fight against poverty.

Adam Smith's theory

After numerous works in the field of philosophy and morality, Adam Smith became interested in the issues of political economy. The value of human labor became the sphere of his research. Smith demonstrated a new approach to the philosophy of mercantilism, which enjoyed great popularity at the time. Mercantilism assumed that a country's wealth depended directly on its reserves of gold and silver. Smith argued that labor productivity plays a key role in this issue.

Adam Smith streamlined existing ideas about economics and popularized the concept of the “invisible hand of the market”. He stated that if people strive to maximize their own interests, this can lead to the best result for society in a global sense. Thus, Smith eliminated the conflict between the pursuit of the selfish goals of each individual and the pursuit of welfare for the whole society. Also, he developed a theory that free trade can satisfy the interests of every member of society, even when it comes to importing cheap goods from abroad.

Despite his promotion of the ideas of capitalism and the free market, Smith understood that private business could eventually come to a monopoly if it was not properly controlled. Also, Smith supported the introduction of a "fair" progressive tax, which implied an increase in the tariff depending on the welfare of the citizen.

Adam Smith has made an enormous contribution to the development of the modern market economy. His works were subsequently refined and expanded by modern economists, and on the basis of them Walras, Samuelson and others built their concepts. Adam Smith's theory of labor was also partly used in the course of his work on the famous Capital. Smith greatly influenced the 19th century free trade movement and precipitated the demise of mercantilism as the dominant political ideology.

Smith never married and remained with his mother until her death. He was often described as a rather unkempt and absent-minded person. He paid little attention to his appearance and was completely immersed in his inner world.

After years of illness of the digestive system, Adam Smith died in the city of Edinburgh on July 17, 1790.

Much more than his wisdom, he was famous for his absent-mindedness. One day the coachman of a stagecoach en route from Edinburgh to Kirkcaldy saw a lone figure in the middle of an open field a few miles from the city of destination. Stopping the horses, he asked the man if he needed help. Only then he, looking around in surprise, realized where he was. Lost in thought, Adam Smith had walked wherever he went (or rather, thought) for several hours. And one Sunday he was seen in a dressing gown in Dunfermline, fifteen miles from Kirkaldi, staring into nothingness and talking to himself. Over the years, the inhabitants of Edinburgh got used to the fact that a lonely old man with a lost look and moving lips, whom everyone called a sage, wanders around the old city at the most inopportune time without a specific purpose.

Little is known about his childhood and adolescence. Adam Smith was born in Kirkcaldy one day in 1723. It is not true that the gypsies stole him and took him to the camp. Adam went to a local school and was, apparently, such a diligent student in Greek and Latin that when he entered the university in Glasgow at the age of fourteen, he was immediately taken to the second year, freed from the study of classical languages, to which the first was devoted. Three years later, he received a scholarship to Oxford University, but of his six-year stay at Balliol College, we only know that he was punished for secretly reading A Treatise on Human Nature by David Hume (later his closest friend), a hated the then reactionary university authorities for atheism. After graduation, Smith gave his famous lectures in Edinburgh, which have come down to us only from the notes of the two students present. Since then, he has become one of the prominent figures of the so-called "Scottish Enlightenment".

Adam Smith taught first logic and then moral philosophy at the University of Glasgow, and his lectures were so successful that they came to listen to them from all over England and Europe, including James Boswell, who left a vivid testimony of his elegant style of presentation ... Mr. Smith would be extremely surprised to learn that descendants would call him "the father of economics." He always considered himself a moral philosopher, was in love with all sciences - exact and humanitarian, and, like all Scottish intellectuals of that generation, worshiped the laws that supported natural and social order, being convinced that only reason - but not religion - can comprehend and explain them.

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The first book by Adam Smith to be published posthumously was A History of Astronomy. The next is a study on the origin of languages. All his life, he dreamed of understanding what ensures the unity and stability of society, when its members - individuals - are so selfish, obstinate and disunited. He strove to find out if there are laws of evolution in history, and what is the reason for the progress and prosperity of some peoples and the stagnation and savagery of others.

Smith's first book to see the light of day during the author's lifetime was The Theory of Moral Sentiments (1759), which attempts to explain what constitutes the very cementitious mortar that keeps society united in spite of the separating forces acting within it. The author calls this natural movement towards our neighbor sympathy, which, supported by the imagination, brings us closer to him and overcomes the negative instincts and passions that alienate us from others. This positive vision of human relationships suggests that "moral sentiment" will ultimately prevail over the cruelty and horrors perpetrated in any society. This curious book, which at times resembles a textbook of good manners, explains, however, with great subtlety how human relations and how they enable society to function without disintegrating.

Only once did Adam Smith leave England, but his trip lasted three whole years, from 1764 to 1767. As a mentor to the young Duke of Buccleuch, he traveled to France and Switzerland, where he met Voltaire, whom he quoted with admiration in his Theory of Moral Sentiments. In Paris, Smith discussed with François Quesnay and the physiocrats whom he criticized in his the next book, despite the excellent personal impression made on him by the founder of this school, with whom he subsequently corresponded. Upon his return to Scotland, Smith settled almost permanently in Kirkaldy with his beloved mother, and spent much of the next few years in his excellent library writing A Study on the Nature and Causes of the Wealth of Nations (1776). The first edition sold out in six months and earned him £ 300. During the life of the author, the book was reprinted five more times (the third - with significant corrections and additions), was translated into French, German, Danish, Italian and Spanish. Praise for her was almost unanimous, and Hume, convinced that this "tangled" work would not immediately, but later win huge masses of admirers, compared it in importance with "The Decline and Fall of the Roman Empire" by Edward Gibbon.

Adam Smith did not even suspect how enormous importance his book would acquire in the future all over the world, even where few people read it. Before his death, he lamented that he had never written a treatise on jurisprudence, which, in his opinion, should complement his undertaken study of the systems that explain human progress. He really was the first to explain to people how and why they came out of the caves and began to develop in all areas (except, alas, the moral), until they subjugated the material world and swung at the stars. A simple and at the same time daunting mover of this process, which is based on freedom and turns selfishness into a social value, Smith formulated in one phrase: “We do not expect to get our lunch from the benevolence of a butcher, brewer or baker, but from their observance of their own interests. We do not appeal to their humanity, but to their selfishness, and we never tell them about our needs, but about their benefits. "

The book made a real revolution in economics, history, philosophy, sociology. It argued that thanks to private property and the division of labor, exceptional productive forces were able to develop, and that competition in a free market is the best mechanism for distributing wealth, rewarding good producers and punishing bad ones, but not they, but the consumer, is the true regulator of the process. And that freedom, not only in the political, social and cultural fields, but also in the economic one, is the main guarantee of prosperity and civilization. Capitalism, society, and laws may have changed a lot since Smith wrote this gigantic 900-page treatise in the 18th century. But no one better explained why some countries flourish, while others vegetate, and where is the true border between civilization and barbarism.

Smith was ugly and awkward. Lexicographer Samuel Johnson, whom the "father of economics" scolded in one of the controversies, claimed that he looked like a "sad dog." At the same time, he was a modest and very ascetic person, devoid of vanity and eager to learn. Nowhere is it mentioned whether he had a fiancée. He may have died as a virgin in 1790.

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