Adam Smith

Biography

Adam Smith was born on June 16, 1723, in Kirkcaldy, Scotland, to a single mother after his father died six months before his birth. Raised in a middling Scottish family, he demonstrated exceptional intellectual promise from an early age. He attended the University of Glasgow at fourteen, where he studied under Francis Hutcheson, who introduced him to moral philosophy and the ideas that would later shape his economic thinking. From Glasgow, he won a scholarship to Oxford University's Balliol College, though he found the education there inferior to what he had received in Scotland.

Returning to Scotland, Smith delivered successful public lectures at Edinburgh University that led to his appointment as Professor of Logic and then Professor of Moral Philosophy at Glasgow University in 1752. During his thirteen years at Glasgow, he published his first major work, 'The Theory of Moral Sentiments' (1759), which established his reputation throughout Europe. The book explored how moral judgments are formed through sympathy and the concept of an 'impartial spectator.' In 1764, he resigned his professorship to become tutor to the Duke of Buccleuch, a position that took him to France where he met Voltaire, encountered the physiocrats led by François Quesnay, and spent eighteen months in stimulating intellectual discourse that would influence his later economic theories.

After returning to Scotland, Smith spent the next decade in his hometown of Kirkcaldy writing his masterpiece, 'An Inquiry into the Nature and Causes of the Wealth of Nations,' published in 1776. This groundbreaking work laid the foundation for modern economic theory, introducing concepts like the division of labor, the invisible hand of the market, and systematic critiques of mercantilism. The book's success was immediate, selling out its first edition within six months and influencing economic policy across Europe and America. In 1778, Smith was appointed Commissioner of Customs in Edinburgh, where he lived quietly with his mother until his death on July 17, 1790, having established himself as the father of modern economics and a key figure of the Scottish Enlightenment.

Major Works & Series

Literary Significance & Legacy

Adam Smith fundamentally transformed economic thought by creating the first systematic analysis of how market economies function. His 'Wealth of Nations' established economics as a distinct academic discipline, moving beyond the moral philosophy and political arithmetic of earlier thinkers to create a comprehensive theory of production, distribution, and consumption. His concepts of the division of labor, comparative advantage, and the invisible hand became cornerstones of economic theory, while his critique of mercantilism laid the intellectual foundation for free trade policies that shaped the modern global economy.

Beyond economics, Smith's integration of moral philosophy with economic analysis in both 'The Theory of Moral Sentiments' and 'The Wealth of Nations' created a sophisticated understanding of human nature that influenced disciplines from philosophy to political science. His work demonstrated that self-interest, when properly channeled through market mechanisms and moral constraints, could serve the common good. This insight became central to liberal democratic theory and helped justify free market capitalism as both economically efficient and morally defensible, making Smith one of history's most influential social theorists.

Best Starting Points

• The Wealth of Nations - Book I (Division of Labor)
  Begin with Smith's famous pin factory example that illustrates how specialization increases productivity - an accessible introduction to his economic thinking.
• The Theory of Moral Sentiments - Part I
  Explore Smith's concept of sympathy and the impartial spectator to understand the moral foundation underlying his economic theories.
• The Wealth of Nations - Book IV (Critique of Mercantilism)
  Read Smith's systematic dismantling of mercantilism and his arguments for free trade - still relevant to modern economic debates.
• Selected Quotes and Passages
  Start with famous quotations like the 'butcher, brewer, and baker' passage to grasp Smith's key insights before tackling the full works.

Famous Characters

• The Impartial Spectator
  Smith's philosophical device representing an objective moral observer within each person who judges the propriety of actions and sentiments.
• The Butcher, Brewer, and Baker
  Smith's famous example of how tradespeople serve the public good through self-interest rather than benevolence, illustrating market mechanisms.
• The Pin Factory Workers
  Workers in Smith's celebrated example of the division of labor, showing how specialization increases productivity from 20 pins per person to 4,800.
• The Merchant
  Smith's archetypal trader who, seeking only personal profit, is led by an 'invisible hand' to promote the public interest.
• The Prudent Man
  Smith's ideal of moral and economic virtue, representing the balance between self-interest and sympathy for others.
• The Poor Man's Son
  Central figure in Smith's parable about ambition and the pursuit of wealth in 'The Theory of Moral Sentiments,' illustrating how material desires drive progress.