Adam Smith:
After being schooled in moral philosophy he would become a key figure in political economics, an interest spawned from his teaching, tutoring and travels. In his life two major works were published; ‘The Theory of Moral Sentiments’ which analysed moral thinking of the time. The other more influential manuscript was ‘An Inquiry into the Nature and Causes of the Wealth of Nations’ which considered factors in a society that would result in a wealthy society such as a free market and the distribution of labour.
For example he argues that the specialisation of labour is crucial to increased productivity, that workers in specialised fields are able to produce more efficiently and contribute more to the production line than that of a worker who assembles the entire product each time.
Book 3-Chapter 1-Of the Different Progress of Opulence in Different Nations.
In a civilised society he suggests trade is a symbiotic relationship between the town and country. The country provides food for labour and the materials for the manufacturing of goods. The town provides the manufactured goods its wealth dependent on the acquisition of materials and sustenance from the country.
The country purchases from the town fruits of its labour whilst the town provides a market for the surplus the country might have. This market in size and demand is reliant on the number and prosperity of those in the town. However the town does not remain reliant on the country for its sustenance. As food stuffs can be imported from other counties or even countries. Similarly the country is not reliant on the demand of the town to purchase its surplus as the option remains for the exportation of goods.
This is the idea of a free market whereby the market dictates the price of goods in context with supply and demand and native goods and imports. This he argues is better than a market regulated by the state such as that dictated by the Corn Laws of 1815.
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