Adam Smith, renowned as the “father of political economy,” had a life as intriguing as his intellectual legacy. Born in 1723 in Kirkcaldy, Scotland, Smith’s life almost took a dramatic turn at the age of four when he was kidnapped. Fortunately, his captors got cold feet and returned him unharmed, unknowingly preserving a future intellectual giant.
Smith’s formal education began at the University of Glasgow, where he graduated at the young age of 17. He then received a scholarship to Oxford, a period he later described as unproductive. Upon returning to Scotland in 1751, he became the Professor of Moral Philosophy at Glasgow.
Smith’s life took an interesting turn when he became the tutor of a wealthy Scottish nobleman’s son. This role allowed him to travel across Europe, where in Paris, he met leading French economists. These interactions fueled his interest in political economy. It was during this period that Smith began writing what would become a monumental work.
After returning to Kirkcaldy in 1766, Smith dedicated the next decade to writing “An Inquiry Into the Nature and Causes of the Wealth of Nations,” published in 1776. He even shared parts of the manuscript with Benjamin Franklin. Smith’s brilliance lay in synthesizing existing economic ideas into a systematic understanding of national economies. His concept of the “invisible hand” described how individuals pursuing personal gain inadvertently contribute to the collective welfare, a principle central to modern economic thought.
The ‘Invisible Hand’: Interestingly, the term “invisible hand” appears only once in “The Wealth of Nations.” Smith used it to illustrate how a domestic investor, intending only his own security, is “led by an invisible hand” to promote the public interest. This concept later evolved into a fundamental principle of economics, symbolizing the self-regulating nature of the market.
Smith’s impact on economics is immeasurable. His insights laid the groundwork for much of contemporary economic theory and practice. His life and works, especially his unique insights like the “invisible hand,” continue to be a bedrock of economic understanding centuries after their conception.
Sources:
- Howard Marshall, “The Great Economists: A History of Economic Thought” (New York: Pitman Publishing, 1967)
- Paul Strathern, “A Brief History of Economic Genius” (New York: Texere, 2002)
- Ian Ross, “The Life of Adam Smith” (Oxford: Clarendon Press, 1995)