Adam Smith was born in 1723 in Kirkcaldy, Scotland. His father who was also named Adam Smith, died a few months before his son's birth. The elder Adam Smith had held the post of Comptroller of Customs at Kirkcaldy. The exact date of Adam’s birth is unknown, but what can be said for sure is that he was baptized on June 5, 1723.
Adam’s mother, Margaret Douglas, was responsible for his early education. Adam was much devoted to his mother. He was the only child in the Smith family . Though he was bestowed with the best of comforts and education he would still have achieved success with his prodigal capabilities and intelligence. He was sickly as an infant and required all the tender solicitude and attention of his mother. She was blamed for treating the child with 'unlimited indulgence.' He later enjoyed the rare satisfaction of being able to respond and reserve his attitude towards his mother in the most undivided manner. This was corroborated by the fact that the only people whom he knew as his family were his mother and her niece, Miss Douglas, who lived with them.
When Adam was about three years old, an incident left an indelible impression on his mind. This incident took place while Adam and his mother made a visit to Strathenry, to meet her uncle Mr. Douglas. There, when young Adam was playing in the courtyard of his uncle’s house, a few vagrants, known as tinkers those days, in Scotland, kidnapped Adam. Luckily his uncle, who heard the footsteps of the vagrants, noticed his absence. He pursued them and Adam was soon rescued.
Adam received the rudiments of his education at a grammar school in Kirkcaldy. He was taught by David Miller, a teacher of considerable repute in those days. It was on account of this eminent man that a genius was produced out of an obscure seminary. There were others like Mr. Oswald of Dunikeir, his brother Dr. John Oswald, afterwards Bishop of Raphoe, and Dr. John Drysdale – all contemporaries of Adam who remained united with him throughout his life.
Among these companions in his earliest years, Adam got attracted towards books, with a passion. Moreover, he had extraordinary memory. His physical weakness prevented him from participating in more active amusements or any other physical games. He was much loved by his friends on account of the warmth he exuded with an uncommon degree of friendliness and generosity. These habits remained throughout life – like his habit of speaking to himself in solitude.
From the grammar school of Kirkcaldy, he was sent to the University of Glasgow. He was 14, when he stepped into the University. Mathematics and Natural Sciences were his favorite subjects. At Glasgow, he attended the lectures of Dr. Francis Hutcheson, called The Father of Speculative Philosophy in Scotland in Modern Times. Hutcheson’s theory of moral sense had much influence on Smith’s own ethical speculations.
At 17, the University of Glasgow sent Adam to Balliol, Oxford. Adam was sent as a Snell Exhibitioner with a purpose for service in the Church of England. But, he preferred the peace of his own mind joining the Oxford against the wishes of his friends and relatives. The previous study of human nature at Glasgow, more particularly of the political history of mankind had opened a boundless field, to his curiosity and ambition. While it afforded scope to his versatile and comprehensive genius, it also gratified his passion for contributing to society. The influence of his early taste for Greek Geometry may be remarked in the elementary clarity of thoughts – the quality with which he frequently stated his political reasonings. The lectures of Dr. Hutcheson, which he had attended prior to his departure from Glasgow – of which he always spoke in terms of the warmest admiration – had a considerable effect in directing his talents to their proper objects.
In England, he employed himself frequently in the practice of translation, particularly from the French. It is probably also at this stage of life, that he cultivated the greatest interest and care for the study of languages. The knowledge he possessed of these, both ancient and modern, was uncommonly extensive and accurate. He acquired the skill to converse immediately with the more ornamental branches of learning, particularly with the works of the Roman, Greek, French and Italian poets.
During his stay in England, he declined to enter into the ecclesiastical profession, because he was more inclined and fascinated with literature. After seven years residency at Oxford, he returned to his motherland and lived with his mother for two years. He engaged himself in study, but without any fixed plans for his future.
In 1748, he fixed his residence at Edinburgh and during that period read lectures on Rhetoric and Belles Lettres, under the patronage of Lord Kames – a well-known person connected to Scottish literature. This formed the greater part of his lectures at Glasgow later on. His lectures were successful and students from far away places, came to hear them. In Edinburgh, he developed an intimate friendship with Alexander Wedderburn, and later with Lord Loughborough and William Johnstones; these were friendships which would continue for the rest of his life.
In 1751, he was elected Professor of Logic in the University of Glasgow, and after a year was appointed Professor of Moral Philosophy. The appointment was followed by the death of Thomas Craigie, the immediate successor of Dr. Hutcheson. The 13 years he spent there were the happiest of his life.
His reputation as a professor spread, and many students from far-off places joined the University. The branches of science, which he taught, became well equipped at the University. His opinions were the chief topics of discussion in clubs and literary societies. Even the small peculiarities in his pronunciation or manner of speaking, became frequent objects of imitation.
While Adam was distinguishing himself with his zeal and ability as a public teacher, he was gradually laying the foundation of a more extensive reputation, by preparing to press for his system of Morals. The first edition of his work appeared in 1759, under the title The Theory of Moral Sentiments. After the publication of this work, Adam lived for four years at Glasgow.
During his early years at Glasgow, Adam developed a close friendship with David Hume. It was a friendship based on mutual admiration and love for simplicity. The friendship formed in an interesting circumstance in the history of both the eminent personalities brought about a near revolution in the world of economics.
It was Hume, who was responsible for Smith’s travel abroad with the Duke of Buccleach after the publication of The Theory of Moral Sentiments. It is believed that he traveled to Paris, Toulouse and Geneva. On that voyage, he became acquainted with men of letters and philosophers, such as D’ Alemhert, Helvetuis, Marmontel, and Morellet. The Duke and the Philosopher became good friends during this tour abroad. They returned to London in October 1766.
The next 10 years of Adam’s life were spent at home with his mother and cousin, preparing his next marvelous work on The Wealth of Nations.
After the publication of The Wealth of Nations, he acquired a great deal of fame. Hume, in his last days, sent a congratulatory letter to Adam. But he disputed some principles of Adam and wanted him to discuss the points of this dispute. Eventually, they met and this was their last meeting before Hume’s death. Adam wrote an account about the cheerfulness with which Hume met his death. About two years after the publication of The Wealth of Nations, Adam was appointed one of the Commissioners of his Majesty’s Customs in Scotland, a position which was bestowed on him at the request of the Duke of Buccleach. The greater part of those two years were spent by him in London in the midst of a literary society.
He spent a part of the last 12 years of his life as the Commissioner of Customs in Scotland and in company of the literary group, which was an agreeable contrast to the second half of his retired life which he spent in solitude.
The duties of his office, the pleasures of friendship, the loss of his mother and cousin, and his increasing ill health, prevented and restricted him from creating new literary projects.
A few days before his death, he ordered all his manuscripts to be burnt, except a few essays, which are still available. Some of these are – a History of Astronomy, History of Ancient Physics, History of Ancient Logic and Metaphysics, Essay on Imitative Arts, essays on certain English and Italian verses and on the External Senses.
The destroyed manuscripts are supposed to have consisted of lectures on Rhetoric, read at Edinburgh 42 years ago and the lectures on Natural Theology and on Jurisprudence which formed part of his lectures at Glasgow.
Adam was more fortunate; or rather his fortune was singular. He survived only for 15 more years after the publication of his works, and during that short period, he not only had the satisfaction of seeing the opposition at first excited and then gradually subside, but also witnessed the practical influence of his writings on the commercial policies of his country.
The additions he made to The Theory of Moral Sentiments in the last winter of his life were published just before his death. His last illness, which arose from a chronic obstruction in his bowels, was prolonged and painful. He had every consolation to soothe it with the tender sympathies of his friends and resigning to what fate had destined for him.
in July 1790, at the age of 67, he passed away because of his prolonged illness, the severity of which, made his death almost a release from his agony. Adam Smith shall always be remembered for his significant contribution in the field of Economics as well as being a loyal friend and a good human being.
Adam Smith was a genius among the economists along with also being a philosopher. Not only did he extend the boundaries of economy, but also enlightened and reformed the commercial policy of Europe.
He has aptly been given the title The Father of Economics. He was from that rare breed of economists who viewed the science of economics as perhaps the most humane of all subjects. Another unique factor of Smith was that he was a moral economist who enriched the world with two books having opposite ideas – The Theory of Moral Sentiments – talking of morals and compassion, and The Wealth of Nations – filled with self-love and hard economic science. These two pioneering creations can be said to be landmarks in his career and life of 67 years. On the other hand, he was a materialist philosopher. An apostle of empirical economic science, who later turned a rich inductive thinker.
Smith had very good oratorial skills and he was an excellent writer as well; his works touching upon such myriad subjects like theology, metaphysics, logic, physics, imitative arts, etc. It is indeed difficult to find words that could describe the rich legacy he left for generations to come.
1723 Birth of Adam Smith.The baptism took place on June 5, 1723 in Kirkcaldy, Fife, Scotland.
1731 He started attending grammar school.
1737 He began his studies at University of Glasgow.
1740 He was sent to Balliol to fit himself for service in Church of England.
1751 He was appointed as Professor of Logic at Glasgow University.
Beginning of his friendship with David Hume.
1752 He was appointed as professor of Moral Philosophy.
1759 He published his Theory of Moral Sentiments.
1766 He delivered lectures on Jurisprudence.
1776 Adam Smith moved to London, where he published An Inquiry into the Nature and Causes of The Wealth of Nations, which gave him popularity. Publication of Account of the Life and Writings of David Hume.
1778 He was appointed to the post of Commissioner of Customs in Edinburgh, Scotland.
The second edition of The Wealth of Nations was published.
1778 Publication of Thoughts on the State of the Contest with America.
1784 His mother died.
July 17, 1790 He died at the age of 67 in Edinburgh, Scotland.
APPROBATION
Adam Smith says that the amount of pleasure or pain felt by one person due to the conduct of another, measures the person’s approbation or the opposite.
The sentiment of a person is just and proper or unjust and improper, compared to another person observing them. This person’s approbation will differ with the degree in which he can sympathize with them. Perfect concern for sentiments would mean perfect approbation.
Moreover, several facts might change our sense of propriety or the contrary to another person’s sentiments, by their concern or disagreement with our own. The object which excites any sentiment in us, has direct relation to us.
MERIT AND DEMERIT
The sense of propriety or impropriety of a moral action is one side of moral approbation. The other side consists of a sense of its merit and demerit.
Action can be proper or improper with relation to its cause or motive while it can be meritorious or demeritorious according to its effect on its beneficial or hurtful tendency.
Only actions of a beneficial tendency, which proceed from proper motives, are meritorious as such actions seem to deserve reward. It is actions of hurtful tendency, proceeding from improper motives, which deserve punishment.
Adam Smith, through his theory shows that wrong actions depend on our sense of their deserving to be punished by the two virtues of beneficence and justice.
INFLUENCE OF PROSPERITY / ADVERSITY / CHANCE / CUSTOM ON MORAL SENTIMENTS
Prosperity and adversity affect the moral judgment of a person as regard to action, thereby making it easier to obtain approbation in one condition than in other.
Though custom can influence our sense of beauty and conduct, its effects on our moral sentiments cannot be exaggerated, for it is more concerning the propriety or impropriety of particular usages than about things of greater importance that their influence is most apt to cause perversion of judgment.
THEORY OF CONSCIENCE AND DUTY
Adam Smith refers to the moral perceptivity of a person as that related to the workings of the instinct of sympathy. According to Hutcheson, mankind has a moral sense in him, which is concerned with the direct perception of moral qualities in actions while the theory of Shaftesbury states that conscience is a primary principle of human nature that cannot be resolved into other facts. These two theories differ from that of Adam Smith.
Smith has explained that one’s moral judgment of actions of others is accounted for by bringing them to the test of our power to sympathize with them. Similarly, he explains our moral judgments concerning our own acts by a sort of reflex application of the principle of sympathy. A person’s sense of duty or feeling of conscience, arises from the application of judgments, we pass on to others, to one’s conduct.
Smith devotes a lot of arguments to the origin and explanation of the principle of one’s moral nature. In this way, he tries to raise the account he gives to conscience, to a higher level than it could attain as a reflex from sympathies of others about oneself.
The sense of duty in its different forms is the consequence of this conscience. When happiness or misery of others depends on one’s conduct, conscience tells that if one prefers oneself to them i.e. interest of one to that of many, one renders oneself the object of contempt and resentment of others. This conscience needs to be kept alive by contact with the world.
Partiality exists in mankind. It is this partiality with regard to one’s conduct, at the time of action and after it, which is one of the main objections to the hypotheses of existence of moral sense and an additional argument in favor of Adam Smith’s theory of self-approbation.
THEORY OF MORAL PRINCIPLES
Along with Smith’s theory of his account of growth, conscience is closely connected with his account of growth of these general moral principles found in the world.
By observing the conduct of others, one gradually forms some rules as to what is fit and proper to do or to avoid.
When the moral principles are formed and established by the voice of all, they appeal as standards of judgment, when we try to apportion their due degree of praise or blame to certain actions.
Adam Smith also said that the sense of duty and a feeling of obligation of the rules of morality which is an important principle in human life, and the only principle capable of governing the bulk of mankind, is nothing but an acquired reverence for the general principles of conduct. This general principle is formed by a person after observing the conduct of others and the consequence it has. It is because of this sense of duty and sacred regard for general rules that one can rely on the conduct of others.
In Adam Smith’s theory, there is a relation between religion and ethics. Though he regards that religion and morality are independent, religion does stand out in the background of his theory.
CHARACTER OF VIRTUE
Adam Smith said that the science of ethics deals with two important questions - one concerning the nature of moral approbation or feeling of right and wrong and the second concerning the nature of virtue or moral elements of which virtue consists. He said that virtue consists in a certain relation to one another, of our selfish and unselfish affections - none being exclusively prominent.
A man’s character of virtue depends upon two different aspects of his conduct, which considers himself and others, in all actions and sayings. A virtuous character will have a combination of qualities, which have a beneficial effect on one’s own as well as other’s happiness.
THEORY OF HAPPINESS
Adam Smith said that happiness is the natural result of virtue. He said that the happiness of another world could be the ultimate motive of being virtuous in this world.
He does not consider the life that seeks happiness through sensual pleasures as worthy of discussion. But his rejection of a life of ambition is more interesting because he seems to express his own philosophy of life. Adam Smith said, "What can be added to the happiness of the man who is in health, who is out of debt and has a clear conscience?" - thus saying how to be happy.
Smith has also written Theory of Utility and Theory of Final Causes in Ethics.
The second edition of The Theory of Moral Sentiments had many alterations. Moreover, the author, without changing any passage criticized by Hume, gave a satisfactory answer in a footnote.
To the third edition, an essay on formation of languages and the different genius of original and compounded languages were added.
WEALTH OF NATIONS
It was in 1776, on the 9th of March that An inquiry into the Nature and causes of the Wealth of Nations was published in two volumes. The first edition, about a thousand copies, was sold in six months. The second edition, a reprint with few corrections was issued in 1778.
Colonial policy and imperial expenditure were the main themes in The Wealth of Nations.
The book covers chapters on wages, profit, rent, taxation, the French economists and their agricultural system. Smith gave four practical maxims of taxation, which were new and startling in those days. These were:
• The subjects of every state should contribute in proportion to their respective abilities.
• A tax should be certain, and not arbitrary.
• A tax should be levied at the time and in the way most convenient to the taxpayer.
• Every tax ought to be so contrived as both to take out and to keep out of the pockets of the people as little as possible over and above what it brings into public treasury.
He considered taxation as one of the causes that impede the progress of wealth. The tax he disliked most was the tax on the necessities of life.
Of all theories or opinions of Smith, his doctrine of empire and imperial expenditure is an important one. This view, which is practiced in the bureaucracies of Europe and often advanced by socialists under the phrase of a theory of consumption, national profusion is a good thing in itself, was not defended by people at that time.
One policy that Smith recommended to the British Government was – First pay off debts and secondly, lessen and gradually remove all taxes that praised process of articles consumed by labor class or what interfered with the free course of trade.
Other than this, topics covered in The Wealth of Nations are: division of labor principle, origin and use of money, wages of labor, rent of land, profits of stock, are found in Book I.
Division of stock, stock lent at interest, different employment of capitals, etc. are part of Book II.
Natural Progress of Opulence, discouragement of agriculture in Europe after the fall of Roman Empire, rise and progress of cities and towns after the fall of Roman Empire. How commerce of towns contributed to improvement of country are present in Book III.
Book IV consists of systems of political economy – principle of commercial mercantile system, restraints upon import from foreign countries of such goods as can be produced at home, as well as about drawbacks, bounties, and treaties of commerce and about colonies.
Book V has details about expenses of Sovereign or Commonwealth, about sources of general or public revenue of the society and about public debts.
• What can be added to the happiness of the man who is in health, who is out of debt and has a clear conscience?
• I shall, in another discourse, endeavor to give an account of the general principles of law and government, and of the different ages and periods of society, not only in what concerns justice, but in what concerns police, revenue and arms, and whatever else is the object of law. I shall not, therefore, at present, enter into any further details concerning the history of jurisprudence.
• How selfish so ever man may be supposed, there are evidently some principles in his nature which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasure of seeing it.
• The agreeable passions of love and joy can satisfy and support the heart without any auxiliary pleasure. The bitter and painful emotions of grief and resentment more strongly require the healing consolation of sympathy.
• There is something agreeable even in the weakness of friendship and humanity, and if we blame the too tender mother, too indulgent father, or the too generous friend, it is always with sympathy and kindness, and with no feeling of hatred or aversion.
• Every faculty in one man is the measure by which he judges of the like faculty in another.
• The house which we have long lived in, the tree whose vendure and shade we have long enjoyed, are both looked upon with a sort of respect which seems due to such benefactors. The decay of one or ruin of another, affects us with a kind of melancholy, though we should sustain no loss by it.
• Three different qualifications are necessary to render anything, the complete and proper object of gratitude or resentment. It must first of all be the cause of pleasure or pain; secondly it must be capable of feeling pleasure or pain; and thirdly it must produce pleasure or pain from a design, approved of in one case or disapproved of in other.
• Virtue is excellence; something uncommonly great and beautiful, which rises far above what is vulgar and ordinary.
• Those who have been educated in what is really good company, not what is commonly called such, who have been accustomed to see nothing in the persons whom they esteemed and lived with but justice, modesty, humanity and good order are more shocked with whatever seems to be inconsistent with the rules which those virtues prescribe.
• We expect truth and justice from an old man as well as from a young, from a clergyman as well as from an officer, and it is in matters of small moment only that we look for distinguishing marks of their respective characters.
• The difference between a man of principles and a worthless fellow is chiefly the difference between a man who adheres resolutely to his maxims of conduct and the man who acts variously and accidently as humor, inclination or interest chance to be uppermost.
• Virtue is excellence; something uncommonly great and beautiful, which rises far above what is vulgar and ordinary.
• Those who have been educated in what is really good company, not what is commonly called such, who have been accustomed to see nothing in the persons whom they esteemed and lived with but justice, modesty, humanity and good order are more shocked with whatever seems to be inconsistent with the rules which those virtues prescribe.
• We expect truth and justice from an old man as well as from a young, from a clergyman as well as from an officer, and it is in matters of small moment only that we look for distinguishing marks of their respective characters.
• The difference between a man of principles and a worthless fellow is chiefly the difference between a man who adheres resolutely to his maxims of conduct and the man who acts variously and accidently as humor, inclination or interest chance to be uppermost.
• Love is commonly succeeded by ambition, but ambition is hardly ever succeeded by love.
• Every man is first and principally recommended to his own care, after himself, his friends, country, or mankind become, by degrees, the object of his sympathies.
• Happiness consists of tranquility and enjoyment. Without tranquility, there can be no enjoyment and with tranquility, there is scarcely anything that may prove a source of pleasure.
• The happiness of mankind as well as of all other relational creatures, seems to be the original purpose of the ‘Author of Nature’ – no other end appearing to be worthy of His supreme wisdom and beneficence.
• To feel much for others, and little for ourselves, to restrain our selfish, and to indulge our benevolent affections, constitutes the perfection of humanity.
• The man of the most perfect virtue, the man whom we naturally love and revere the most, is he, who joins to the most perfect command of his own original and selfish feelings, the most exquisite sensibility, both to the original and sympathetic feelings of others.
