World famous economist Adam Smith was born in 1723 near Edinburgh, Scotland. He was known for given interesting lectures and wrote two books.
Smith’s theory was that nations gain riches with an environment that allows individuals to use their talent and wealth for personal interest and by choice. He also theorized that prices and earnings would increase to top levels when the government allows free enterprise.
Adam Smith’s way of thinking included that vocation’s with special or difficult training would result in less people choosing that particular path and these people would earn higher wages. For example doctors earn a higher salary than teachers. It was also his thought that those who were willing to do jobs that were distasteful would earn more in wages than those who worked in pleasant surroundings.
When America was founded these principals were set into place for its occupants. Smith advised that when a new product was created, cost initially would be elevated. When competitors added their own product, then cost would be reduced. This is a factor that happens in the world with electronic devices today.
The wisdom that Adam Smith gave to the world should be followed by nations to create the best possible environment for their people.
