Sang+Woo+Smith+D

media type="youtube" key="XAQIjkBjj8U" height="344" width="425" Birth: Kirkcaldy, Scotland (June 16th, 1723) Death: Edinburgh, Scotland (July 17th, 1790 AGE 67) School tradition: classical economic Wealth of Nations • Book published by Adams Smith • Values of different items • Economy • Payment of workers Influence • Aristotle • Chyenius • Hobbes • Petty • Butler • Locke • Mandeville • Hutchinson • Hume • Quesnay Type of Philosophy: Moral philosophy (social science) • Broad field that encompassed ethics, jurisprudence, economics, politics, and religion. • INVISIBLE HAND • FREE MARKET • DIVISION OF LABOR • Society progressively improved and people gained opportunities to live better lives. • People were motivated by their own self-interest that was naturally caused by the "invisible hand." • Workers could always find other jobs, and customers could buy their goods elsewhere. • The "invisible hand" is the only thing needed to generate economic growth. • He also pointed out that government should not interfere in market and society. • Free trade: increasing production had more advantage, but fewer disadvantages from the competition with other nations. • Everyone should contribute to a society’s wealth and could enjoy its benefits. • New way of systems and organization. The Questions/Problems: • How can the economy be improved most successfully?
 * Adam Smith**


 * Primary Source(The Case for Free Trade and Lower Taxes**)

By restraining, either by high duties, or by absolute prohibitions, the importation of such goods from foreign countries as can be produced at home, the monopoly of the home-market is more or less secured to the domestic industry employed in producing them. Thus the. . . high duties upon the importation of corn, which in times of moderate plenty amount to a prohibition, give a like advantage to the growers of that commodity. The prohibition of the importation of foreign woolens is equally favorable to the woolen manufacturers. The silk manufacture, though altogether employed upon foreign materials, has lately obtained the same advantage. The linen manufacture has not yet obtained it, but is making great strides towards it. Many other sorts of manufacturers have, in the same manner, obtained in Great Britain, either altogether, or very nearly a monopoly against their countrymen. . . . That this monopoly of the home-market frequently gives great encouragement to that particular species of industry which enjoys it. . . cannot be doubted. But whether it tends either to increase the general industry of the society, or to give it the most advantageous direction, is not, perhaps, altogether so evident. . . . The natural advantages which one country has over another in producing particular commodities are sometimes so great, that it is acknowledged by all the world to be in vain to struggle with them. By means of glasses, hotbeds, and hotwalls, very good grapes can be raised in Scotland, and very good wine too can be made of them at about thirty times the expense for which at least equally good can be brought from foreign countries. Would it be a reasonable law to prohibit the importation of all foreign wines, merely to encourage the making of claret and burgundy in Scotland? But if there would be a manifest absurdity in turning towards any employment, thirty times more of the capital and industry of the country, than would be necessary to purchase from foreign countries an equal quantity of the commodities wanted, there must be an absurdity, though not altogether so glaring, yet exactly of the same kind, in turning towards any such employment a thirtieth, or even a three hundredth part more of either. . . . As long as the one country has those advantages, and the other wants them, it will always be more advantageous for the latter, rather to buy of the former than to make. It is an acquired advantage only, which one artificer has over his neighbor, who exercises another trade; and yet they both find it more advantageous to buy of one another, than to make what does not belong to their particular trades. Merchants and manufacturers are the people who derive the greatest advantage from this monopoly of the home market. The prohibition of the importation of foreign cattle, and of salt provisions, together with the high duties upon foreign corn, which in times of moderate plenty amount to a prohibition, are not near so advantageous to the graziers and farmers of Great Britain, as other regulations of the same kind are to its merchants and manufacturers. Manufacturers, those of the finer kind especially, are more easily transported from one country to another than corn or cattle. It is in the fetching and carrying manufacturers, accordingly, that foreign trade is chiefly employed. In manufactures, a very small advantage will enable foreigners to undersell our own workmen, even in the home market. It will require a very great one to enable them to do so in the rude produce of the soil. If the free importation of foreign manufacturers were permitted, several of the home manufactures would probably suffer, and some of them, perhaps, go to ruin altogether, and a considerable part of the stock and industry at present employed in them, would be forced to find out some other employment. But the freest importation of the rude produce of the soil could have no such effect upon the agriculture of the country. 1. Would it be a reasonable law to prohibit the importation of all foreign wines, merely to encourage the making of claret and burgundy in Scotland? 2. Who derive the greatest advantage from this monopoly of the home market? 3. What is the importance of of the monopoly of the home-market? 4. What is a example that can give a like advantage to the growers of that commodity?
 * (Questions)**

• "Adam Smith." World History: The Modern Era. 2008. ABC-CLIO. 3 Dec. 2008 . • Frader, Laura L.. The Industrial Revolution: A History in Documents (Pages from History). New York: Oxford University Press, USA, 2006." • Adam Smith - Wikipedia, the free encyclopedia." Wikipedia, the free encyclopedia. 4 Dec. 2008  • "Adam Smith: The Wealth of Nations." Washington State University - Pullman, Washington. 4 Dec. 2008 <http://www.wsu.edu:8080/%7Ewldci
 * Bibliography**


 * Script**

Today! We have a very special guest. Mr. Smith!! So Mr. Smith nice to meet you… Yes nice to meet you too ^^ Mr. Smith can you introduces yourself? Yes Of course Hello there, as many people may know already I’m Adams Smith. My birthday is unknown; however I was baptized in July 5th, 1723. I’m one of the most famous Scottish philosophers in the 1790s. In 1751, I entered the university of Galsgow; however I was not really satisfied with my school so transferred to the Oxford. I became a professor, and I wrote a book about economy and my philosophies. One of the most famous books I can tell you quickly is Wealth of Nations. This books explains how to manage lands, how items can have different values in different time, how workers are paid according to class, and this book is generally about the economy. How do we control this economy? How can we make people in our country become satisfied with the improving economy? Now lets see how my book reveals in real life. Mr. Song? Can we transition to the interview? So Now lets focus on our small interview Q1. What is your philosophy about? My philosophy explains that economy should be flexible in the class who are involved in it, and it also explains the importance of leaving the economy the way it is right now. I believe the government should allow any individuals of the country to commit any action for the improvement of the economy. As the conclusion I can say the economy doesn’t need the government’s tight and strict controls. Q2. One of your main themes was the Division of Labor; can you explain your definition of Division of Labor? I believe the Division of Labor will end up with greater efficiency in the manufacturing goods. I found out the specialization and concentration of the workers in a single task often leads to greater quality of the item produced, and the greater productivity of items. My goal was to increase in productivity obtainable from the technology. Therefore I wanted to use the new machines created in the industrial revolution as efficient as possible. Q3. How can the economy be improved most successfully? Hmm… this is a very hard question. However I can explain Economy is like the wind. The “invisible hand” which is like the natural flow of the market. I can say the “invisible hand” is the only factor, which can generate the economic growth. People are motivated by interest in the world, which is caused the “invisible hand”. I believe the economy will be improved most successfully when the people don’t care about the economic success of a country. however, most wants to improve economy tight and rapid. The act, which the government passes to improve the economy, is all nonsense for me! This would ruin the economic prosperity of one country. Q4. Why did you support the free trade? The free trade was very useful because it increased the production, and which made more advantage, and this helps the economy of one state to compete with other nations. I also believe all men is whatever classes should be helpful in growing economy of country. For today our interview is over! Please look for the next interview with other philosophers.