Two Intellectual Landmarks in the Year 1749

2019 ◽  
Vol 17 (2) ◽  
pp. 101-123
Author(s):  
Farhad Rassekh
Keyword(s):  
Paradigm Shift ◽  
David Hume ◽  
Adam Smith ◽  
Considerable Extent ◽  
Monetary Theory ◽  
Economic Theories ◽  
Classical Economics ◽  
Wealth Of Nations ◽  
Economic Thinking

In the year 1749 Adam Smith conceived his theory of commercial liberty and David Hume laid the foundation of his monetary theory. These two intellectual developments, despite their brevity, heralded a paradigm shift in economic thinking. Smith expanded and promulgated his theory over the course of his scholarly career, culminating in the publication of The Wealth of Nations in 1776. Hume elaborated on the constituents of his monetary framework in several essays that were published in 1752. Although Smith and Hume devised their economic theories in 1749 independently, these theories complemented each other and to a considerable extent created the structure of classical economics.

Enlightenment, Scottish

2018 ◽  
Author(s):  
Christopher J. Berry
Keyword(s):  
Cultural History ◽  
David Hume ◽  
Causal Explanation ◽  
Adam Smith ◽  
Social Institutions ◽  
Commercial Society ◽  
The Enlightenment ◽  
History Of ◽  
Wealth Of Nations ◽  
William Robertson

This term refers to the intellectual movement in Scotland in roughly the second half of the eighteenth century. As a movement it included many theorists – the best known of whom are David Hume, Adam Smith and Thomas Reid – who maintained both institutional and personal links with each other. It was not narrowly philosophical, although in the Common Sense School it did develop its own distinctive body of argument. Its most characteristic feature was the development of a wide-ranging social theory that included pioneering ‘sociological’ works by Adam Ferguson and John Millar, socio-cultural history by Henry Home (Lord Kames) and William Robertson as well as Hume’s Essays (1777) and Smith’s classic ‘economics’ text The Wealth of Nations (1776). All these works shared a commitment to ‘scientific’ causal explanation and sought, from the premise of the uniformity of human nature, to establish a history of social institutions in which the notion of a mode of subsistence played a key organising role. Typically of the Enlightenment as a whole this explanatory endeavour was not divorced from explicit evaluation. Though not uncritical of their own commercial society, the Scots were in no doubt as to the superiority of their own age compared to what had gone before.

Trade: Neoclassical Liberal Views on Impacts

2018 ◽  
Author(s):  
Jeffrey W. Ladewig
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
David Hume ◽  
Foreign Currency ◽  
Adam Smith ◽  
General Idea ◽  
Economic Theories ◽  
The World ◽  
Negative Impacts ◽  
Almost All

International trade is a dynamic and powerful force that affects nearly every individual, business, and nation in the world. Its scope and scale have also made international trade an immense, intense, and perennial subject of interest and inquiry. Some of the foundational works on international trade can be traced back to Adam Smith and David Hume, whose theories sought to debunk the commonly held idea of international trade at the time: mercantilism, which viewed exports as beneficial because they generated an increase in foreign currency and a nation’s wealth, and imports as detrimental because they were thought to decrease a nation’s wealth. Today, the general idea of comparative advantage informs almost all neoclassical economists’ models of international trade. However, neoclassical economists tend to assume that the theoretical benefits of international trade are clear, and thus, often ignore or dismiss the negative impacts of international trade and the studies that challenge their theories. In fact, many countries have not seen the benefits predicted by neoclassical economic theories. This is particularly evident when comparing the effects of international trade across developed and developing countries. Furthermore, there is evidence that international trade has developed along patterns that are not predicted by the traditional theories of comparative advantage. Given these, the practice of trade and its international impact can be much murkier.

What did Adam Smith learn from François Quesnay?

2020 ◽  
Vol 18 (2) ◽  
pp. 175-191
Author(s):  
Toni Vogel Carey
Keyword(s):  
Scientific Method ◽  
Adam Smith ◽  
Government Control ◽  
Individual Liberty ◽  
Moral Sentiments ◽  
Economic Theories ◽  
Main Thesis ◽  
Wealth Of Nations ◽  
The One

Book IV of Adam Smith's Wealth of Nations concerns two rival economic theories, Mercantilism and Physiocracy. The latter, François Quesnay's system, occupies only the ninth and final chapter, and it begins with a stunning dismissal. Yet, fifteen pages later, Smith praises this theory to the skies. That cries out for explanation. Like Mercantilism, Smith's system emphasizes commerce, whereas Quesnay's is confined to agriculture. But like Physiocracy, Smith's system is built on individual liberty, whereas Mercantilism is one of government control. Despite his initial put-down, Smith is naturally inclined more toward Quesnay's philosophy. And the main thesis of my paper is to suggest one reason for this that has not previously been brought to light, and that can explain Smith's extravagant praise for it. Quesnay employs a Newtonian scientific method different from the one emphasized in Smith's early ‘Astronomy’ treatise, a method Smith first prominently introduced a decade after his meetings with Quesnay, in Wealth of Nations and Smith's eulogy for Hume (1776), and in the sixth (1790) edition of his Theory of Moral Sentiments.

scholarly journals A Brazilian Adam Smith

2018 ◽  
Vol 6 (1) ◽  
Author(s):  
Paulo Roberto Almeida
Keyword(s):  
Foreign Trade ◽  
20Th Century ◽  
19Th Century ◽  
Adam Smith ◽  
Colonial Economy ◽  
Wealth Of Nations ◽  
Economic Thinking ◽  
Conceptual Evolution ◽  
The 19Th Century ◽  
Brazilian Ports

Adam Smith’s seminal work, The Wealth of Nations, was introduced to Brazilian readers by an autodidatic “economist”, José da Silva Lisboa, at the beginning of the 19th century. The paper intends to reconstruct the reception of Smith’s ideas in Brazil (and Portugal), through the early works of José da Silva Lisboa. He was a remarkable intellectual, liberal by instinct besides a government official, who was largely responsible for the “economic opening” of Brazilian ports to foreign trade (decreed by the Portuguese Regent, Prince D. João, in 1808, at his arrival in Brazil). He was honored with the title of Viscount of Cairu (who became the patron of the Brazilian economists in the 20th century). He translated, incorporated, copied and transformed many Smithian ideas in his books (published in Portugal and Brazil, by Imprensa Régia), adapting them to a colonial economy and a backward agricultural environment. He suggested, among other original features, the existence of a fourth factor of production (besides land, labor and capital): knowledge, which could be considered an anticipation of modern conceptual evolution in economic thinking.

Adam Smith

2017 ◽  
Author(s):  
Eric Schliesser
Keyword(s):  
David Hume ◽  
Adam Smith ◽  
Mary Wollstonecraft ◽  
Invisible Hand ◽  
Scottish Enlightenment ◽  
Isaac Newton ◽  
Single Argument ◽  
Wealth Of Nations ◽  
The Impact

This book treats Adam Smith as a systematic philosopher. Smith was a giant of the Scottish Enlightenment with polymath interests. The book explores Smith’s economics and ethics in light of his other commitments on the nature of knowledge, the theory of emotions, the theory of mind, his account of language, the nature of causation, and his views on methodology. It places Smith’s ideas in the context of a host of other philosophers, especially David Hume, Rousseau, and Isaac Newton; it draws on the reception of Smith’s ideas by Sophie de Grouchy, Mary Wollstonecraft, and other philosophers and economists to sketch the elements of and the detailed connections within Smith’s system. The book traces out Smith’s system and puts it in the context of his highly developed views on the norms that govern responsible speech. In particular, the book articulates Smith’s concerns with the impact of his public policy recommendations, especially on the least powerful in society. In so doing, the book offers new interpretations of Smith’s views on the invisible hand, Wealth of Nations, his treatment of virtue, the nature of freedom, the individual’s relationship to society, his account of the passions, the moral roles of religion, and his treatment of the role of mathematics in economics. While the book offers a single argument, it is organized in modular fashion and includes a helpful index; readers with a more focused interest in Smith’s achievements can skip ahead to the section of interest.

The Decay of Trade: The Politics of Economic Theory In Eighteenth-Century Britain

1996 ◽  
Vol 18 (2) ◽  
pp. 319-346 ◽  
Author(s):  
Richard A. Kleer
Keyword(s):  
Economic Theory ◽  
Eighteenth Century ◽  
David Hume ◽  
Adam Smith ◽  
Economic Thought ◽  
Scottish Enlightenment ◽  
Civic Humanism ◽  
Economic Theories ◽  
Political Debates ◽  
Intellectual Traditions

In the last decade or so, intellectual historians have tried to alter and enhance our understanding of the Scottish Enlightenment by situating the classic writings in the context of contemporary political debates and intellectual traditions. Two main approaches have emerged to date, tied to the themes of natural jurisprudence and civic humanism respectively. While both have much to offer to historians of economic thought, the present paper seeks to evaluate only the latter. It focuses in particular on civic humanist interpretations of the economic theories of David Hume and Adam Smith.

scholarly journals Retrospectives: Adam Smith's Discovery of Trade Gravity

2018 ◽  
Vol 32 (2) ◽  
pp. 209-222 ◽  
Author(s):  
Bruce Elmslie
Keyword(s):  
David Hume ◽  
Adam Smith ◽  
Trade Restrictions ◽  
Trade Theory ◽  
Economic Sectors ◽  
Capital Productivity ◽  
Empirical Trade ◽  
Wealth Of Nations ◽  
Economic Size ◽  
A Current

The gravity equation is a current workhorse of empirical trade theory. It is generally acknowledged that this theory, which relates the extent of trade between countries to their respective sizes, distances, and relative trade barriers, was first developed by Jan Tinbergen in 1962. Acceptance of the gravity model as part of the discipline's core was limited by its scant theoretical foundation for the first 40 years of its existence. This paper finds that a theory of trade gravity was first developed by Adam Smith in The Wealth of Nations. Moreover, it is shown that Smith's statement of a proportional relation between economic size and distance came about as an application of his general theory of differential capital productivity in different economic sectors, and his elaboration of a theory of the gains from trade originated by David Hume. It is further shown that Smith had an explanation of the size of border affects in trade volumes, and a gravity theory of trade restrictions.

‘Less Abused than I had Reason to Expect’: The Reception of The Wealth of Nations in Britain, 1776–90

1987 ◽  
Vol 30 (2) ◽  
pp. 337-366 ◽  
Author(s):  
Richard F. Teichgraeber
Keyword(s):  
Eighteenth Century ◽  
Great Britain ◽  
Free Trade ◽  
Adam Smith ◽  
Social Attitudes ◽  
Economic Policies ◽  
Economic Developments ◽  
Wealth Of Nations ◽  
Economic Thinking ◽  
Limited Process

When Adam Smith set out to re-shape the dominant economic policies and assumptions of his time, he knew success in pressing for ‘free trade’ would depend on his ability to imprint his views on the minds of contemporary statesmen and legislators. But he was never confident that this operation might take place during his lifetime. In the Wealth of Nations, he declared that to expect freedom of trade to be accepted entirely in Great Britain was ‘as absurd as to expect that an Oceana or Utopia should ever be established in it’, and this was by no means an offhand remark. Much of the massive book was coloured by Smith's awareness that liberal economic doctrines, whatever their considerable intellectual merits, ran far ahead of actual political and social attitudes in eighteenth-century Europe. In the first half of the nineteenth century, a variety of political and economic developments of course refuted Smith's view that ‘free trade’ was an unattainable ideal. But the historical verification of his economic thinking was a slow, difficult, and limited process.

scholarly journals Idleness and the Very Sparing Hand of God: The invisible tie between Hume’s "Dialogues Concerning Natural Religion" and Smith’s "Wealth of Nations"

2021 ◽  
Author(s):  
Paolo Santori
Keyword(s):  
Eighteenth Century ◽  
Cultural Context ◽  
David Hume ◽  
Adam Smith ◽  
Invisible Hand ◽  
Commercial Society ◽  
Natural Religion ◽  
Self Interest ◽  
The Subject ◽  
Wealth Of Nations

In the eighteenth-century Scottish and British cultural context, idleness was a central issue for religion, literature, art, and philosophy. This paper analyzes the reflections of David Hume and Adam Smith on idleness and commercial society. Hume advanced his most provocative view on the subject in his Dialogues Concerning Natural Religion (1779), where idleness is represented as the endowment made by the “very sparing hand” of the “author of nature” to humanity. My argument is that Smith’s view on idleness advanced in the Wealth of Nations (1776) is connected to Hume’s Dialogues, as Smith’s invisible hand defeats idleness through a combination of self-interest, the propensity to exchange, and the division of labor. The broader aim of this study is to add to the philosophical relationship between the Scottish philosophers.

Adam Ferguson and the Idea of Civil Society

2019 ◽  
Author(s):  
Craig Smith
Keyword(s):  
Civil Society ◽  
Moral Philosophy ◽  
David Hume ◽  
Adam Smith ◽  
Scottish Enlightenment ◽  
Commercial Society ◽  
University Of Edinburgh ◽  
English Speaking ◽  
English Speaking World ◽  
The University

Adam Ferguson was a Professor of Moral Philosophy at the University of Edinburgh and a leading member of the Scottish Enlightenment. A friend of David Hume and Adam Smith, Ferguson was among the leading exponents of the Scottish Enlightenment’s attempts to develop a science of man and was among the first in the English speaking world to make use of the terms civilization, civil society, and political science. This book challenges many of the prevailing assumptions about Ferguson’s thinking. It explores how Ferguson sought to create a methodology for moral science that combined empirically based social theory with normative moralising with a view to supporting the virtuous education of the British elite. The Ferguson that emerges is far from the stereotyped image of a nostalgic republican sceptical about modernity, and instead is one much closer to the mainstream Scottish Enlightenment’s defence of eighteenth century British commercial society.

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