"Study on the nature and causes of the wealth of nations" in the theory of Adam Smith

The work of Adam Smith had a huge impact on classical economic theory. In the first turn, the author's merit was that kind of a clear system that he attached to the economic structure of society.

The idea of ​​economic freedom

The greatest popularity of the idea of ​​Adam Smithacquire in Europe during the period of the formation and development of capitalist relations. The interests of the bourgeois class consisted in giving it full economic freedom, including land-oriented land, employing workers, using capital, etc. The idea of ​​economic freedom in practice was unquestionably a progressive moment in the development of society, as it restrained the monarchs' gave wide opportunities for the development of productive forces in the economic system.

Correlation of the roles of the individual and the state in the economic system

The philosophical foundations on which the theory reliedAdam Smith, primarily concerned with the system of obtaining and distributing profits, socio-ethical norms of economic activity, the role of the state in regulating economic processes, as well as the role of individual subjects (groups of subjects).

From the position of Adam Smith, the state mustact as so-called. "Night watchman." It should not establish and regulate economic processes, its main function is the implementation of judicial, constituent, and protective functions in society. Thus, the role of public administration in the economy, from the point of view of Smith, should be of a minimized nature.

As for the role of the individual, it follows thatturn to the idea of ​​"economic man". "Study of the nature and causes of the wealth of peoples" Smith describes an individual in the economic process as a person with an egoistic orientation, guided in their actions by considerations of personal benefit. The actions of the "economic man" are built on the principle of equivalent compensation. This principle forms a system of economic exchange, which is the foundation of a market economy that is natural for human life.

The law of the "invisible hand"

In addition to the state and individuals,economic processes in society are regulated by certain economic laws. Adam Smith calls them "invisible hand". The effect of such laws does not depend on the will and consciousness of society. However, at the same time, the management of economic processes is much higher than management at the state level. In turn, each individual, guided by his own benefit, can bring much more benefits to society than if he was oriented to the benefit of society from the beginning.

The system of peoples' wealth

"Study on the nature and causes of wealthpeoples "Adam Smith identifies as the basis of wealth the number of working subjects in the state and the productivity of labor of these subjects.The source of wealth, in turn, is determined by the annual labor of each individual nation, the people counting on its annual consumption.

The division of labor is a necessarycondition of labor productivity. Thanks to her, the work process improves working skills for a particular operation. This, in turn, determines the economy of the time necessary for workers to move from one operation to another. The division of labor at the micro and macro levels, as defined by Smith's Study of the Nature and Causes of the Wealth of Nations, is different in origin. In the course of the work of the manufactory the specialization of the workers is determined by the manager, meanwhile the "invisible hand" mentioned above functions in the national economy.

The lower limit of the worker's wages should beIt is determined by the cost of the minimum of means necessary for the existence of the worker and his family. Also here is the impact of the material and cultural level of the development of the state. In addition, the amount of wages depends on economic characteristics such as the demand and supply of labor in the labor market. Adam Smith was an active supporter of a high level of wages, which should improve the situation of the lower strata of the people, and interested the material worker in increasing his labor productivity.

The essence of profit

Smith offers a twofold definition of the conceptarrived. On the one hand, it represents a reward for the activities of the entrepreneur; on the other hand, a certain amount of labor that the worker has not paid for by the capitalist. At the same time, profit depends on the amount of capital involved and is not related to the amount of labor expended and its complexity in the process of managing the enterprise.

Thus, "The study of nature and causeswealth of nations "Adam Smith formed a special notion of human society as a gigantic mechanism (machine), the right and coordinated movements of which ideally should provide an effective for the whole society result.

Subsequently, the idea of ​​Smith that, in order to obtainprofit each individual must proceed from his own interests, was refuted by the American mathematician John Nash. From his point of view, there are situations in which there is a "bad" (negative amount or a mutually beneficial connection). At the same time Nash notes the fact that this behavior of economic entities meets cultural norms (renunciation of violence, treachery and deceit). The trustworthy atmosphere between the subjects was considered by Nash as a necessary condition for the economic well-being of society.