Adam Smith: The Father Of Modern Economics

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In history, Adam Smith – the father of Modern Economics, defined economics as the abundance of money. He claimed that economics studies human behavior on how to manage their resources and the objective to earn more wealth by any means at any cost. He also assumed that wealth is the only important factor in the world. Earning wealth is top priority and mankind is the second priority. Mankind is for wealth but wealth is not for mankind. The idea of A. Smith is that human beings have their own interests to make money. If a person wanted to sell a product or services, it is not only the product or services he really wanted to make but his own interest of enjoying the financial rewards he get. In an event of doing something to earn money, a person unexpectedly helps to produce a best result for all. A man would invest his money to other business ventures to help him earn the highest return for a certain level of risk. The more investments in different ventures the more possibility of higher returns but a higher level of risk. If a man would want to become wealthy, he has to work hard for it. He has to have a plan on how to get to the top. It is not an easy road to take but once he achieves his financial goals, he can enjoy the benefits of it. Wealth generation is also taking risks. A man has unlimited wants and…show more content…
Macroeconomic models (AD-AS model, IS/LM model) and their forecasts are used by both government and large corporations to assist in the development and evaluation of economic policy and strategic planning for business ventures. These models can produce successful developments in the economy allowing society or organization to maintain stability, to attain growth not only for the whole economic picture but also the individual members to

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