Adam Smith born the year 1723 was thought to be one of the worlds greatest economists. In Fact he was known as the father of economy. He was also known by the way he thought and the way he wrote about the country's economy and in this paper I will explain the way he described and the way he thought of the economy and why his thoughts have carried on for the last two hundred years. In the eighteenth century, most people thought they knew how countries get rich. The way they thought was that you have to export as much as possible and import as little as possible so that they can have a rich economy. They also thought that we had a fixed wealth but Adam Smith was the first person to oppose this theory. He proposed that Hard-working, efficient families grow richer and hard working, efficient countries do also. He also proposed that we do not have a fixed wealth. Adam Smith said that wealth is a function of productivity and therefore of people and the incentives which encourage them. Secondly, the colonists also believed that the government should keep most of the wealth and this because they believed that the wealth was limited. They established that the government could authorize monopolies, and that their friends and supporters, using the police to stop anyone competing with their monopolies could control it. Adam smith explained that monopoly charges any price that it chooses, and that it robs consumers and makes the countries less efficient and poorer. He also explained that competition means that businesses try to charge the lowest price possible, so that consumers could get the maximum value for money and that if they can buy more, jobs in the economy will be more supported and then the country will grow even more richer than it already is. Adam Smith also explained that without the police stopping competition, monopolies couldnt survive for very long. Thirdly, Adam Smith wrote the most powerful incentive is Selfinterest. The reason...
