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History of Economic thought : Adam Smith
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0% found this document useful (0 votes)
64 views12 pagesAdamsmith Sasikala
History of Economic thought : Adam Smith
Uploaded by
Himanshu sainiCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 12
‘Adam Smith ei
school brought tremendous change in economic thinking and
treated the subject of economics ina scientific way. Thirdly
this schoo is classical asitiffered from other school of thought,
Finally, the doctrines ofthis school are fllonedeento-dayby
the modern economists, The following are the characters
features of classical school:
Chapter 7 1) The classical economists had faith in laissez faire, For
them that Government i best which governs least.
ADAM SMITH 2) Classicals advocated a market economy basedon perfect
competition. Production, exchange and disbution are guided
by market forces.
INTRODUCTION 3) They assumed that full employment level would exist
in the economy. They thought that the economy was self-
“Over a century z din England, adjusting and any deviation from full employment would
“These doctrines were sents in Economic Though, automatically get adjusted to full employment.
“Talons da eames by Adam Sith ond hig 1) They belisvedin the existence ofa harmony ofits,
“Tasboenreparicdastne a cena. Adam Smith 5) The classical economists empasied the importance
“Sehoot The shoal ie ede ofthe Br chasse of al economic activites.
“Riong whom he mos trea a ROU como g} The clasials elcid inthe universal f economic
ican fe wrere besides Adam Smith, lay 5
helped the develop asiciom. These riers the problems of economic growth ad development.
Faun anne te eit la em They looked atthe economy asa whole. Their approach
old theories, ‘anding and elaborating the wa
ee believed in Say’ law
The wordclassc bas been used inthe economy ee oa
to convey three meanings. First is used sehen erature cof market.
refer the econ —a
ot ens ar ed esa. Secon, ADAM SMITH (1723-1790)
LM. Keynes has used the term to denote ihe ‘ond, ¢
Marshall and his followers. Third, Schumer stings of Adan Sith stands an ston by ims
‘classic! to mean the orginal work thar oo te term steconomic thought. Hei regarded asthe funder of
classical school refers to the economists whe =: Here pe ae Ae Thon zag say ha Eco
ed "iy aoe oor in 1776 wi Adam Smith's ealh OENaions:
on science was bom in 1776
Different reasons are given for choosing the nam a economic problems in ®
forthis school of though. Because ofits wide pr MSiap Hes theft economist ee aie
come to be called as classic. Secondly, the docu thas
mes oF
ee i 4 \ aa a History of Economic Thou
economist. He has been rightly called the "
Gray has rightly sa
Eonamy’. Alexander Gay Bs
Seat Terchad been mrtrecomic discussions, with him we
‘each the stage of discussing economics"
Life and Antecedents
‘Adar Smith was bom in 1723 ina small town of Kirkaldy
ip-Seetand. He studied atthe Universities of Glasgow and
Oxford and specialised in Mathematics, natural philosophy and
moral and political sciences. At Glasgow, he worked as a
Professor of Logie and later became a Professor of moral
philosophy. In 1759, he published his "Theary of Moral
‘Scptiments" which cared him great fame. In 1764, Smith,
accepted to become the Tur ofthe Duke of Buccleuch, With
the Duke, Adam Smith toured Europe. On his European tour,
j-Ezancc ie met the famous Physiorats Quesnay, Turgot and
_Noluie. Onis tum to Scotland he setled downto write his
Tamous book, “An Jnguiry into the Nature and causes of the
Wealth of Nations” which was published in 1776, In 1778, he
‘was appointed commissioner of customs at Edinburg which
position he hel tl his death in 1790, a
Factors Influencing Adam Smith
‘There are three
important factors
‘economic thought of Adam Smith
and travels (c) The economic and
Political codons aa
ae
views of later mercantilists like a ema
seandcatc
5 ade, emphasised
prpultion. From Pty, Adan Smith og RE ofage
finange and canons of taxatign, is ideas on Put
Tron Pn ao, Aan
ho
a: mea
MV
—_ ap
Smith
‘Adam a
‘Being a personal friend of Quesnay and Turgo, he hi
deeply influenced by their ideas, mcaaiea sock
intrest, cgpulation af wealth and tural order. Smith borrowed
IMGcrally from his teacher at Glassgow, Francis Hutcheson the
regarding, division of labour, changes ifr the value of
money, taxation ec, Smith was also grateful to David Hume for
many of his ideas on foreign trade, money labour and igteres.
Finally the poem, "Th¢ Fable-of the bees” written by Bernard
cde Mandeville influenced Smiths’ idea reparding self-interest
and public imerest. oo ang
b) Clubs and Travels
‘The clubs which Adam Smith joined at Glasgow and
Edinburg had also influenced his economic ideas. These clubs
discussed many questions of economic importance. In addition,
his travels with the Duke of Buccleuch provided him an
‘opportunity to meet the famous physiocrats and other scholars,
©) The Economic and Political Conditions
‘The economic and politcal environment of the time also
influenced the views and ideas of Adam Smith. During the
later part ofthe 18th century, fundamental chang
in England. Large agricultural estates were coming up,
Population growth helped to increase agrculare and i
production. Accumulation of capital faite te growth of
corhmerce and tran & :
Tn the political sid, the historical event-decaration of
the American Independence, emphasised the equality and
Freedom of al people. The slogans liberty equality and fatty
began tobe heard, Thusi italism,
large scale ity of
the fact that Smith borrowed many ideas from
his the importance ofhis own contributions cannot
ee Renimiagd. He collected the satred ideas, gave them &
Inspite of ‘ History of Economie Tho
shape andenkancedtrsgiianee, His work thus crea
evolution inthe domain of economic thinking,
“The Philosophy of Adam Smith
‘Adam Smiths philosophical ideas which underlie
economic thinking are found in his master piece "Wealth
Nations" Eventhough, there is no special mention about
‘yetemofhilesopy andexplicy sen nowhere ins analysis
‘vecan read between te fines, the philosophy that pervades
whale work -
‘Smith was guided by one universal principle, namely;
ines. Every individu has the desire to better his Own ft I
‘as on this bei, that he regarded the entre economic world
asa big workshop created by division of labour. He believed
that human conduct was governed by selFlove, sympathy, the:
desire tobe fee, a sense of propriety, a habit of labour and the
propensity to satisfy his wans with the help of others. Each
mani the bes judge ofhis own interest. Ifcomplete freedom is
(Altec rpeubrcotpieiaba a ere!
Inset behind mar can Sa
oe neta Sais leet tal
oe ae
itutions Which could nc ane ea
‘ator not De ‘maintained By any
freedom, because he believed that the nat cra ene SuPPorter oF
proved tobe eflectve than tein tec motives
supported Laissez-faire doctrine, AS a result, he
si
‘were injurious.
's Naturalism and Optimism
Inadion othe concept oft anon
natural community eeated by division of 488 agree
‘Adam Sinith is
istingushin Smith's works two other fundamental idea around
“shich histheoris are framed. Fisisthe ides oftheapontaneous,
origin of economic institutions and sesondly, their | beneficient
‘haracer. These two ae called as "Naturalism" and “optimism.
They are closely related and freqiently mixed up in his work.
‘Smith proved that all economic institution created by
human beings eame ino existence spontaneously. For this he
gave many examples like vison of bou- money capital
theory of demand and spel te. Though pocesof evolution
‘man felt the need and established various economic institutions.
Division of labour isnot the effect of human wisdom.
It of instinct among.
ABS clear rom his statement," is ot fromthe newton
athe butcher, the brewer ofthe baker that we expect our dinner
ut fiom their regard to heirown inte”.
‘Siler, money is the esl of te collective instinct of
people guide by personal matves, Te dst et 2
corrmnge gave rise to money. As people realised mad
aarraaes inthe barter system of exchange. they hough os
ai excange and inverted money. "Money sts 6
product ofthe simultaneous ation ofa reat number of eopIs,
rr peying his personal inctination (Gide and Rist)
“The same position swith capital ToS =
‘source of economic Ife. He "
‘ygs the true source o see ms mh
ifrponance 19 ap
‘yeatth, The accu
weraTlancous efforts of thousands
motivated by selinteres powers ;
rahe income and employ these savin
furirncome ple of Sis naturalism oF SPR
‘origin of economic i Gutions is his theory of demand a
dingtothe demand.
supply. Producers supply cor
Pah ee un
pm aaa arenxe ee History of Economic Thought
cause then only, market price willbe equal to normal or natural
Baca eno pte or theses Bat alo Fra,
‘Smith also extends his naturalism to other spheres. For
‘example in the case of population, he maintains that Variations
inbe wage te regulates the soplyof about, through changes
iacpatton wages are mow than subsistence level,
prosperity ofthe workers leads to an increase in population,
‘But when wages are below the subsistence level, poverty and
riser cause the death of many
For Adam Smith Naturalism and Optimism are inseperable,
Economic institutions are not only natural but also beneficial,
Sith believed tha sl interest not only creates and maintains
economic institutions, but ensures that the nation progresses
‘towards greater wealth and prosperity. Smith thus tried to prove.
thatthese ponaneosinsittions wer alo best, Even though,
this philosophy of naturalism and optimism pervades all
oom theores, he never applies ths concept to all. Infact.
optimism isintended for production and not distribution
price, whi
Wealth of nations
awit Stith’ epoch making book “An Enquiry into the
ature and cause ofthe Wealth of Nations” (shortly known as
Meals of Nation) was published in 1776. Its a masterly
ore eae theories. Senior praised Smith forthe
Renant accuracy ofhisknowledge andthe atactve styl of
Is writing Edmund Bure considered Wealth of Nations a the
portant book tha has ever been writen. The book deals
ceonom bat a dic
Intel apis, js
‘Wealth of Nations. :
followed by fv bn a
sand shor
books del with the ears sna
Siinuion. The hed beak ae
Soweto cen ‘nomic history of
la rise of cities and towns,
consists of an introduction of thee pages,
pendix. The first two
‘Adan Smith He
‘Te fourth book contains a crtical analysis of the physiocratic
‘and meFCARETist theories. The last book deals wi pale fie
‘nance, Taxation and state interference.
Adam Smith in his book, "The Wealth of Nations” defined
Economicsas, "The Seience of Wealth, He said that Economies
is concemed with, "an enquiry into the nature and causes of
svealth of Nations" Whereby "it proposes to enrich the people
and the sovereign". Accordingto Ada Smithall hat economies,
‘deals with is wealth, Itexplains how people acquire mass wealth.
Itemphasises an eaming and spending wealth as if wealth is
‘everything for man. It also deals with the laws of production,
distribution and consumption of wealth, This definition makes
‘wealth as the subject matter of economics. It makes economics
‘an independent subject and science. Its insistence on enrichios
the people and the soverign is still appreciated.
‘SMITH'S MAIN ECONOMICIDEAS
Labour
‘The concepts "Labout” and "Division of labour” have
attained significance through the excellent treatment of the
‘subjects by Adam Smith in his "Wealth of Nations". The
Physigcrats considered land alone productive. They never
‘Buto Adam Smith Labour isthe most important factor
which seas the wealth ation} Is clearly stated in he
opening sentence ofthe Book a follows. "The annual labour of
very nation isthe fund which originally supplies it with all the
necessaries and convenicnees of lifeWwhich itannually consumes
and which consists always either inthe immediate produce of
‘that labour, orin whatis purchased with hat produce from other
rations". When Smith emphasised the importance of labour, he
‘didnot underestimate the important roe played by. nature in.
production. He was aware of the fact that both physical * History of Economic Thought
environment and labour determined the wealth of nations,
ere Adam Smith distinguishes between :
unproductive labour, Smith gave two definitions of produ
Tarr that tour is productive that produces durable
(vendible) commodities. It is called Durable-Vendiblee
‘commodity criterion. (b) That labour is productive that adds,
value to the product, This is known as value-added criterion,
According to the first criterion, that labour which produces
durable commodities that can be accumulated is productive:
labour. Whereas unproductive labour produces services which
are consumed a the time of production, For example, the labour
‘ofa worker in a shoe factory is productive and that of a personal
senantsunpodcive
According the value-added criterion, productive labour
‘otonly maintains tselfbut also brings profitsto its employers,
‘Adam Smith's distinction between productive and
‘unproductive labour is faulty, Smith tied to broaden the
Dhyslocratic idea of productive labour but didnot succeed. The
Phsslocrats regarded only agrcultureal labour as productive,
Bur Smith's concept of productv
idea ek it of edu bow neues all ype of
tars ible goods. But he did not include
Division of Labour”
The first chapter on
ngs hatin Boi of Wath FNatons "OF he
“Tn net labour empire impresoras
Faw cL preduetion. “While labour is the ene SENS
= ene pt the source of wealth,
producvy of labour and
Fables ofthe Bees”. Th
The only remarkable feature of Smiths iene
vision,
of labours ag
Qe
‘Adam Smith n
‘Schumpeter points out that, "nobody, either before or after Adam.
Smith, ever thought of putting such a burden upon division of
labour. With Adam Smith itis practically the only factor in
economic progress”.
(According to Adam Smith division of labour "isa system
_of social co-operation” by which production is eared in
particular activities) Adam Smits example of pin making,
~ industry which invOlves 18 different operations has become a
classic example, Smith has shown that an individual pin maker,
‘working alone, could not make more than 20 pins a day.- But
‘under proper division of labour, he could produce 4800 pins a
day.
'by which a particular type of labour which produces goods 0
~ satisfy the individual needs are transformed into social labour
pointed by Adam Smith E
1), It increases the productivity of labour through
specialisation”
2) As work is sub-divided and done
also incfeases. z
3) Worker's efficiency and skill increase when work is
subdivided into various parts anda workers eskedto do a$mall
part ofthe whole job.
4) There is saving of time and tools. ;
5) As prodiction increases quickly it forms an incentive
investors,
“Ram Smith alo pointed out the disadvantages of division of
labour.
1) As worker is confined to one orto operations, there is.
‘no personal satisfaction of having made all product.
2) Itleadsto immobility of labour because of specialisation,
3) As the same work is done repeatedly, the worker gets
iis _-
History of Economie Th
8
mental stagnation.
tht ut tt iin of labour was limi
the extent of the market. The wider the market for
iy, the greater the division of labour. So in order
“pave a high degree of division of labour, large scale producti
ion of labour was limited by the availabil
bored which le
‘Adam Sit
is essential. Divisi
smith regarded capital asa fountain of national wealth,
aterroleto play in production, The wealth of a natig
‘depends upon division of labour and division of labour it
_govermed by capital In his bo
appears in three forms (I) a5 an
‘3a fund maintaining the workers
nd G3)as a source of res
Sith distinguished between two types of capital, namel
fixed capital and cireulating capital
ould be employed in four different ways-(I) in procuring
‘materials annually forthe consumption ofthe society (2) in
Manufacture of raw materials (3) i fansporti
soodsand Yin the distribution. In other words capital is used
Loti eulivation oF ind ines and fisheries” sezondly for
oe thirdly for wholesale distribution and fourthly
sie nstluional environment
z cae of interest inthe supply of
a te of interest would
reapial ecause the ent ld,
Rotate itr ecng ee
‘Adam Smith 6
But Smith's ideas on capital gave rise to controversies
E
among economists. Atone place he regarded labour as the source
of wealth data oeS is ete
zat te regarded capital as the source.
“of wealth are 3
Agriculture - E
Having been influenced by the physiocratc ideas, Adar
‘Smith gave a high place to agriculture. Smith believed that
investment in agriculture was the most productive form of capital
investment because in agriculture, "nature labours along with
men’.
Money 5
‘After discussing the concept of division of labour in the «
first three chapters of the first book, Smith discusses about _
money. Regarding the origin of money, he held the view that,”
"Everyman...become in some measure a merchant and therefore
ineffect, a currency is needed to serve asthe universal instrument _
‘of commerce". Thus money is en instrument which facilitates
exchange and without it large scale production and commerce
‘would not be possible. So itis an important factor contributing
to the extension of division of labour
‘According to Smit, mOficy developed spontaneously to
remove the difficulties inthe barter system of exchenge. He
stressed the two important functions of money viz, medium of |
exchange and measure of value. e'
He regarded money asthe nominal price of commadities.
He rejected the bullionist pol s which
aimed at keeping surplus money at home. He demonstrated
clearly that the surplus quantity of money would be exported to
other countries. He suggested that the quantity of money in
circulation should be determined by the level of internal
economic activity é History of Economic Thought
is discussion of value by
ale inexcange, The
hé comn and the second the
ds. This he explained with the
“Ths commodities Tike water
Tile value-in-exchange.
Tike diamond ha
h_starte:
{egarding the determination of value, Smith explained
iso ears of vate, ay, Lbou then of vale
“and cost of production theory of value,. Smith believed that
“Tabour was the real souree of value, The value of a thing
“depended upon the amount of labour spent for its production,
yccording to him. the real price of everything was “the toil and:
“Gouble of acquiring it’ This was te Essense of his Labour
‘Theory of Value. Thus the theory that labour is the cause of
‘valu was fist formulated by the Father of Political Economy.
Icis the same theory which was used later on by Karl Marx to
stack capitalism,
‘Adam Smith
isthe resultof thee
I
ative efforsof labour land and capital
ha situation, the price of a commodity is the sum of the
wards paid to labour, land and capital,
‘Then Adam Smith proceedsto the treatment of natural and
‘market prices In each society here exists an average rate of
(crest, Wages, profit and rent, which Adam Smith calls, "the
natural rates", corresponding to this isthe natural price. Iti the
price which covers the natural rates of profits, wages and rent.
‘Thus the concept of natural price is essentially the cost of
production theory of value.
‘~~~ Contrary to this is the market price. The market price is -
the actual price prevailing inthe market and is determined by
‘the forces of demand and supply. The competitive mechanism
Of the market ensures the tendency towards the equilibrium or
natural price in the long run. ff the-market price is higher than *
the natural price, the supply will increase and wil bring the
market price down to jts natural price. Similarly, if the market
price is less than the natural price the sply will merease and
a as
ees -H 2
Butin his cost of production theory of value, Smith gave
_Acantradictory view. He said the val ‘ommodity was.
‘ovemed by its cost of production, This consisted of payments
tadeiolind, bow andeapial, Sik ote eset
choice Between these two theo
must std hat Sith ston
ithnot only discussed the,
clement ofthe pri
kel pee ne acme ‘but also natural price and
et. He sys that in an early primi
capa ees tana early primitive society where
‘pop ett NA no sated and and was was not
anor lone was the sole dete ‘and measure
Frcor of pode tual world where more than One
"2nd the production of a commodity.
fae | NP.
> >
uanty Quanity
Fig (#) Fig. @)
‘push the market price down tothe natural price, The following
figures show this +
In figure 1 (A) demands greater than she market supply - tistor of Economic Thoughy wot -
y pi PE > FO theory Of Distribution
Smith's theory of eistibution isnot clea. He di
“about ren, wages, intrest and profit
Lew Rent
He defined rent as "The rent of land is the price paid for
lo ; the use of land, "Its that portion ofthe pre ofthe farmers
a-P} AP paid to the landlords. He called it a monopoly price. At one
Mace Smith regarded cent as a prcedeterining element At
'D another place, he regarded rent as price-determined. ‘Under
x uv “equal to supply. the physioerate influence, Smith eonsidered rent ste outcome
easy Fr of the powers of natu.
Fig (0) Thatural_price are wages .
equal NP=P.
Regarding wages, Adam Smith was no clear ether
CRITICAL APPRAISAL OF SMITHS = 4 _staément ori ig explanaton, He didnot 8° a single theo
BESANT eres bata summary of number of wage Teoris: The
‘Adam Smith di not frm - Sense ores we Come aeoss in the chaper on WAGES aT
Seat age fund theory, the subsistence theory, the bergen
se between the two theories theory andthe productivity Teor. But Adam Smith was mainly
bso an Po theres teceant and spoT theo of
soul nese aig els oeeeoa
ring rod, itis nota proper seale ne eed
ae determined by demand and
because sshd
skilled labour ma
fe Inthe short period, wore:
supglyof about, The demand for Tabour de jepends on the size of
ood y take longtime to produce a
Supply of labour
the wages fand which in tum depends on ‘onthe amount of capital
ger pital, greater wil be the demand for
2) Misireted labour e
admits that "nothing can have
annot have value, Ev
re vale, on Karl a
sig’: He si "mdected bea one
Diino does not count as labc
‘Larger the amount of capital,
Tabear and vice versa, Qn the supply side, wages a ulated,
“py subsistence wage at and he size ‘of population.
No doubt, 1d: for labour ean
sistenco level, When the market wages fe
‘The cot rod
how the narra odustion theory of value di
itis empty and meani roduction are wve the Su el, jead a healthy Tile,
sutalnaten fey so a 4 ove te Saris ne supply of lout This reas in
Pres of emma ot 80 xan the Ses nia Soa eA OS rate f0 the
2 ar 5 ‘subsistence Tevel. st for abou is
andthus
inthe fallow
“inerese fom:
Eis reached!
wage'a de tothe
In igure 2, the ini
the supply of labour may lag behind. This
ges. Thus
i
Sopply of
Laboor
bub, * Nor, ¢
dt alibi i .
Mth -demand for labour s epee
wage will labour stil rises fr
288 Wills fom Og, OH ee eto DL, ae
10 Lang once
~~ Then Adam Smit
Of wages in different,
th discussed thee
Fig,
auses forth
ifference in money
agreeableness.af the
1 inequality
Adam Smith am
cnoployment (2) the eos of eaming he sil (3) he
So layment (2 the trust eposed ine Giana
probability of succéSs. ——_—_——
see The wage rate according to Smith depended upon the
rational income, changes in population, amount taken by other
meets of production, goad and bd years, cos of provision ee
Profit and Interest
‘smith did not clearly distinguish between profit and,
interest, He regarded profitasa surplus income andas the retum,
on capital Tres was apart of pofito be paid oF OWE
te wages Went UB.
*——Fdam Smith had the opinion that wages and profits moved
in the opposite direction. "The increase of stock, which rises
wages, tends to lower profits.” However, he made some
exceptions to this statement. For example in new colonies both
‘wages and profit may be high
‘According to Smith interest is the "Compensation which
the Borrower pays to the ender, for the profits
“opportunity of making By the ase ofthe money". Adam Stith
used the principle of equal net advantage to explain the
a
sedis pringlp eae ae
differences in profitand interest. ae
jssee Faire or Economie Liberty
Like physioerats, Adam Smith was a great champion of
the principle of economic liber. He ardently advocated the
poly of lisez fare, Toynbee has remarked that Smits etre
economic thought isa plea for liberty. Every page ois weiing
isillumined by the passion for freedom. Hedidnothave agreat
fuith inthe ole of Government ori the efficiency ofits offal.
Smith prefered economic liberty as it would increase
national property. Really speaking he favoured fre ade: He.
‘was agains state interference in economic activities, For that
he gave many reasons. Ue argued thatthe Government could History of Economie Thoy
%6
pr ecoment of the needs ofthe economy. Further, he belie
thatthe agents ofthe stateare negligent and thriftless. There
talpractices, favouritism and edtapism. He went othe ext
Of suggesting that payment othe Government servants shou
tbe made in proportion to the work done by them.
Functions of State
Asa part ofhis liberalism, Smith advocated the follo
rinimum functions ofthe Goverment: (a) Protection agai
Toreign counties () administration of law and justice and (
establishment and maintenance of public works like
‘analsharboursand schools. However, the state might inte
if necessary, in matters like foreign trade, banking, educat
‘ate of interest and labour relations.
Public Finance
ie thot of Wealth ofNatns deals wththe
of the Goverment. His teatment of this subj i
oe Coen of this subject has gained
sna enpton anh ser of canons of tations
Accating Smith bli Frac is needed to meet the
‘Spoxsibliis ofthe Siac. The revenuc ofthe Govemment ig.
derived from tw
se 2) Tm Tg GS () Funds, and and capital ofthe
Lion th lt? Bue the revenue authorities, he
{lowed tein ge nts of tation, The later economists
theories without any change.
Canon of abit
she «Iie Bbiet of
the suppeeof the Gon
rea a a
7 lity wo Pay or This principl
oplebacnety seadb ree Principle. tt cence
ites. Progressive nation is base si epectve
"ey State ought to
oat at contribute towards
darn Smith ”
‘Canon of certainity
‘This implies thatthe tax which each individual isbound to
pay should be certain and not arbitrary. The time of payment,
the manner of payment, the amount 10 be paid etc, should be
cleat tothe tax payer.
Canon of convenience
- "Every tax ought tobe levied atthe time, orn the manner
ly to be convenient forthe contributor tor
Canon of economy :
|. Ttimplies that taxes shouldbe collected at minimum cost
tothe Government. F ?
International Trade /~
‘The IV Book of Wealth of Nations mainly criticises the
‘mercantilist and Physiocratic doctrines. It is here thafAdam
Smith has gi is ideas it trade and against
rotection, He criticised mercantilist idea of control and
“protection Fle is notin favour of cecum oe
“silver by means. of ose le Soils ae