and economics in his lectures and less to his theories of morals. Smith also argued for a limited government. As a result, he is responsible for popularizing many of the ideas that underpin the school of thought that became known as classical economics. Adam Smith in his book Wealth of Nations pointed out three benefits of division of labour:. After staying in Geneva, the part went to Paris, where Smith came to know intellectual leaders such as Ben Franklin, Turgot, Jean. This means that the workers perform their duties feeling as if they are being forced other than doing out of their own will.This greatly lowers the morale of the workers and as a result lower their productivity. In the book, Smith argued that people are self-interested but naturally like to help others.
The Theory of Moral Sentiments, smith is most famous for his 1776-piece, "The Wealth of Nations but his first major treatise, "The Theory of Moral Sentiments released in 1759 created many ideas still practiced today. Each situation grows out of preceding one in a uniquely determined way and the individuals whose act combine to produce each situation count individually for no more than the individual cells of a tree. Nature teaches man the lesson of morality and honesty. In his first book, "The Theory of Moral Sentiments Smith proposed the idea of the invisible handthe tendency of free markets to regulate themselves by means of competition, supply and demand, and self-interest. Smith advocates for specialization for jobs among workers. These acquisitions of skills aimed at improving the effectiveness of the workforce are still practiced today by many companies.
The Wealth of Nations documented industrial development in Europe. The process of growth is cumulative. With the fall in interest rate, the money lenders will lend more to earn more interest for the purpose of maintaining their standard of living at the previous level. These ideas by Smith are incorporated into todays discussions on economic issues. Investment also starts declining and in this way, the end results of capitalist is stationary state. To create equality in the nation the government would have to be more involved in helping to allocate wealth from one class to another. Then each buys the amount of meat, bread, and candlesticks that his household needs. Physiocracy came into existence due to mercantilism. This argument stated that for the employees to be more productive, they needed to be subject to their bosses or seniors. At the end of 1763, he obtained an offer from Charles Townshend-who had been introduced to Smith by David Hume- to tutor his stepson, Henry Scott, the young Duke of Buccleuch. After touring the south of France, the group moved to Geneva, where Smith met with the philosopher Voltaire. Thus, Smith believed that, under stationary conditions, wage rate falls to the subsistence level, whereas in periods of rapid capital accumulation, they rise above this level.