Adam Smith: The Scottish Philosopher Who Shaped Modern Economics and Became the Father of Capitalism

Adam Smith, widely regarded as the father of modern economics and capitalism, remains one of the most influential thinkers in human history, whose ideas continue to shape economic policy and debate more than two centuries after his death.

**Early Life and Education**

Born in Kirkcaldy, Scotland, in June 1723, Adam Smith was raised by his widowed mother, Margaret Douglas, after his father died just months before his birth. A bright and curious child, Smith attended the Burgh School of Kirkcaldy before enrolling at the University of Glasgow at the remarkable age of 14.

At Glasgow, Smith studied moral philosophy under Francis Hutcheson, whose teachings on natural liberty would profoundly influence his later work. He subsequently won a scholarship to Balliol College, Oxford, where he spent six years largely teaching himself through extensive reading.

**Academic Career**

Returning to Scotland in 1748, Smith delivered public lectures in Edinburgh before being appointed Professor of Logic at the University of Glasgow in 1751. He soon transferred to the Chair of Moral Philosophy, a position he held for 13 years and later described as the happiest period of his life.

During this time, Smith published his first major work, 'The Theory of Moral Sentiments' (1759), which explored how human morality depends on sympathy between individuals and established his reputation as a leading philosopher.

**The Wealth of Nations**

Smith's magnum opus, 'An Inquiry into the Nature and Causes of the Wealth of Nations,' was published in 1776 and revolutionised economic thinking. The work introduced concepts that remain fundamental to economics today.

Smith argued that national wealth should be measured not by gold reserves but by the total of production and commerce, now known as gross domestic product. He championed the division of labour, famously using a pin factory to illustrate how specialisation dramatically increases productivity.

**Core Beliefs and Philosophy**

Central to Smith's economic philosophy was the concept of the 'invisible hand' – the idea that individuals pursuing their own self-interest inadvertently benefit society as a whole through market mechanisms.

'It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest,' Smith wrote in one of his most quoted passages.

Smith advocated for free markets with minimal government intervention, believing that competition naturally regulates prices and quality. However, contrary to popular belief, he was not opposed to all government action. He supported public education, infrastructure, and recognised that some regulation was necessary to prevent monopolies and protect workers.

Smith was also deeply concerned with ethics and justice. He believed that while self-interest drives commerce, humans possess natural sympathy for others that forms the basis of moral behaviour.

**Later Years and Legacy**

Smith served as Commissioner of Customs in Scotland from 1778 until his death in Edinburgh on 17 July 1790, at the age of 67. He never married and requested that most of his unpublished manuscripts be destroyed.

Today, Adam Smith's influence pervades global economic policy. His ideas laid the groundwork for classical economics and continue to inform debates about free trade, market regulation, and the role of government in the economy. His image adorns the Bank of England's £20 note, a fitting tribute to the philosopher who transformed our understanding of wealth and commerce.

Whether praised by free-market advocates or critiqued by those favouring greater economic intervention, Adam Smith's intellectual legacy remains inescapable in any serious discussion of how economies function and how societies prosper.