Adam smith father of economics

Adam Smith (1723-1790),  a Citizen of Scotland, is popularly known as the father of economics as well as the leader of classical economists. Adam Smith was the first economist to present a systematic analysis of economics. Therefore, he is regarded as the “father of Economics.” Adam Smith published his epoch-making book “an Inquiry into the nature and causes of the wealth of Nation” in 1776 AD. This book is popularly known as Wealth of Nations. IT is considered as the Bible of the science of Economics. From 1776 to 1850, Several Great Economists such as J.B Say, David Ricardo, T.R Malthus, J.S.Mill, etc had fully supported and followed the economic ideas of Adam smith. They were of the view that Economics was concerned with the production, Consumption, exchange, and distribution of Wealth.

It is Obvious that Adam Smith considered his work to be an inquiry into the nature and causes of the wealth of a nation. In other words, he treated economics as a science of wealth.

According to J.B.Say, “Economics is the science which treats of Wealth”. Similarly, J.S.Mill Defined Economics as, “the Practical of the production and distribution of wealth“.

Adam Smith Was concerned with the broader aspects of wealth, the means by which the total volume of production could be increased. This has been a recent aim of economic policy. J.S Mills defined economics as “Economics is the practical science of production and distribution of wealth”. These two factions influence the standard of living of people According to J.B. Say, “Economics is the body of knowledge which relates to Wealth.”

The meaning of wealth as used by Adam Smith Relates to an abundance of money. It implies that the economists are expected to suggest ways and means of increasing the wealth of a nation. Hence, economics is the study of the activities of people involved in the production of wealth.

Adam smith father of economics
Adam smith father of economics

Adam Smith (1723-1790)

A Citizen of Scotland is popularly known as the Father of Economics as well as the leader of classical economists.

“Economics is a Science of Wealth”

Publication book: The wealth of Nation,1776

Followers: J.B Say, David Ricardo, T.R Malthus, J.S.Mill Etc.




Characteristics of Wealth Definiton

The main characteristics of wealth Definition are as follows.

  1. Study of Wealth

According to the Wealth Definition, Economics is concerned only yo the study of wealth. It deals with the production, Consumption, exchange, and distribution of wealth. Economics studies the human beings who are engaged in the production and consumption of wealth and does not study those beings who are not engaged in the production of material things.

2. Main Goal of human-being is to earn Wealth.

As per the wealth definition, the main goal of the human being is to earn money because wealth or money is only one means which can satisfy human wants.

3. Primary place to wealth

This Definition has given the primary place to wealth and the Secondary place to man. This shows that classical economists have regarded man as a means and wealth as an end.

4. Employed LAbour is the Source of Wealth

Adam Smith in His Definition of Economics assumed that wages earned by Active human resources be the only and most important source of income of a country. He also Suggested that Active laborers can earn a High Amount of wages only through the division of labor in the production and distribution of goods and Services.

5. Study of Economic Man

A wealth of Definition has imagined the study of such a man who always thinks about Earning more and more WEalth throughout his Life. Thus, Adam Smith explains that Economic studies the behavior of those human beings who have the main objective of earning more and more wealth. The human being of such nature is an “Economic Man”.

Criticism of Wealth Definition

The WEalth Definition of Economics has been Criticized on Several grounds by Different economists like Carlyle, Ruskin, and Mathew, and Morris, etc. They have characterized it as a bastard Science, Dismal Science, Bread and Butter Science, and the Gospel of Mammon. The main Criticism is as follows:

  1. Too much emphasis on Wealth

Adam Smith considered that economics is the science that deals only with Wealth and materials Goods. But the critics pointed out that economics studies not only material goods and wealth but also some non-material things such as the service of a teacher, a lawyer, an engineer which also fulfill human needs and wants. Therefore, Services produced by human resources also constitute an important aspect of wealth.

2. Incomplete and Inadequate

The Wealth definition is incomplete and inadequate. It lacks an analytical approach. It does not shed any light on the nature of economic problems like unemployment, inequality, poverty, etc. It puts emphasis on earring and spending of wealth but ignores the scarcity and choice involved in the production and distribution of wealth.

3. Single source of Wealth

According to Wealth Definition, the Source of the wealth of a nation is only employed labor But critics viewed that human Resources, Capital Resources, and physical resources are also used as Sources of Wealth. All these resources put together can be utilized to earn maximum wealth by a nation.

4. Assumption of Economic man is wrong

Adam smith’s Definition only includes that person who is involved in economic activities in the study of economics. But all the people who lived in the world should involve not only in Earning wealth but also in obtaining maximum satisfaction from the utilization of their wealth. Except for wealth, there are other qualitative aspects in human life like friendship, love, cooperation, respect, self-esteem, sympathy which in rich human beings are more than wealth. Thus, the pure economic man as explained by Adam Smith can’t exist in the real world.

Important Questions and Answers

a). What is Economics?

It is a Social Science which Studies human behavior related to how scarce resources should be allocated to increase economic welfare.


b)What is the Definition of Economics Given By Marshall?

ans. According to Marshall, “Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment with the use of material requisites of well-being”.

c)What is the Definition of Economics given By Robbins?

ans. According to Robbins, ” Economics is the Science which studies human behaviour as a relationship between ends and scare means which have alternative uses”.

d)Define Microeconomics?

ans. Microeconomics is the study of particular firm, particular house hold, individual price,wages incomes,individual industries particualr commodities.





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Hemant Chaudhary is an student 19 years old. He is interested in Hacking, Blogging,coding. He like to Visit new Places and make new Friends. He used to Learn His web works From Friends and Currently is is CEO and Founder of Meropaper and