Adam Smith

Adam Smith was a Scottish thinker who wrote about how people buy, sell, and work. He was born in 1723 in Kirkcaldy, Scotland, and died in 1790. Adam Smith is often described as an economist. An economist is a person who studies how goods, services, and money move through society. His ideas were written during a time of growing trade and industry in Europe.

Adam Smith studied at the University of Glasgow and later traveled in Europe. He spent much of his life teaching and writing. One of his most well-known books is The Wealth of Nations, published in 1776. This book described how countries grow richer through work, trade, and production. It focused on everyday activities, such as making tools, farming, and selling goods.

In his writing, Adam Smith explained the idea of division of labor. This means that work is split into smaller tasks, with each person doing one part. For example, in a pin factory, one worker cuts wire, another sharpens it, and another attaches the head. Smith explained that this method helps people produce more items in less time.

Adam Smith also wrote about markets. A market is a place where buyers and sellers exchange goods or services. He described how prices can change based on supply and demand. Supply means how much of something is available. Demand means how much people want it. When many people want an item but few are available, the price may rise.

Smith used the phrase invisible hand to describe how people, while acting in their own interest, can affect the economy. He used this phrase only a few times, and it was meant as a simple image. It described how everyday choices can help organize trade without a single person controlling everything.

Later in his life, Adam Smith worked as a customs official. This was a job that involved checking goods brought into a country and collecting taxes. He continued to write and revise his books. Adam Smith lived quietly and remained focused on his studies until his death. His writings became widely read in Britain and beyond.