This covers the first 50 or so pages in-depth, then I summed the remainder. The Worldly Philosophers is simply, a refined collection of some of the greatest theories and books over economics and economists. The need for economists didnâ€™t arise until the creation of the market system, in which one does whatever is in their best interest. This of course would lead to the arrival of the question: How does a market system survive if everyone is going for hatâ€™s only best for themselves? Economists surfaced to answer that question and any others that might arise with it. Of course, it took several centuries for the market system to take root in many countries.
While we may think obtaining wealth is something that â€œtranscendsâ€ time, it isnâ€™t, trade may have existed, but it wasnâ€™t quite so much for personal acquisition of wealth as it is now, if it really was at all then. The market system is not just a trading system it is: â€œa mechanism for sustaining and maintaining an entire society.â€ It was around the 1700â€™s in which the market system was finally â€œbornâ€, or created. Adam Smith was a brilliant economist however; he was a bit, â€œoff beat.â€ Heâ€™s also the author of The Wealth of Nations, which explains the various parts of the market system many may not have noticed.
- Thesis Statement
- Structure and Outline
- Voice and Grammar
He also explains that self-interest isnâ€™t the only driving force behind the market system through that. Simply put, he says: if one only allows himself to see his own interests his competition will tae away his business, and if he charges too much for his goods, his customers will simply leave. The market system will also balance itself, for example: socks are the dominant produced item, and many have them, but not many have shoes, this causes an increase in price and thus in the amount a factory owner can pay his workers, which starts up self-interest and causes the workers of the sock factory to go to the shoe factory.
This eventually causes a decline in the cost of shoes and an increase in the cost of socks, thusly resetting and keeping itself in check. Smith also proposed that two laws were responsible for helping keep the system together: The Law of Accumulation, and of Population. Accumulation creates wage increase, and population creates more jobs to take those increased.