Adam Smith: A Wealth of WisdomThe moral philosopher and economist Adam Smith is the author of influential theories of classical economics, but some of his explanations are prefigured by earlier authors, such as Thomas Mun and Anne Robert Jacques Turgot.Say no to plagiarism. Get a tailor-made essay on "Why violent video games should not be banned"? Get an original essay In his seminal work, An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Scott explains in depth how nations create wealth through international relations. trade. Scott argues that strong economies thrive on consumption rather than production, and that it is important to refrain from over-regulating this trade, because too much regulation could create national monopolies that would harm society. However, Scott was not the first economist to argue for international trade as a means of creating national wealth. Thomas Mun also argued that gold should be accumulated by increasing the volume of international trade, as there was no other way to conserve it. Mun advocated mercantilism through common port facilities, where there should be more exports than imports to protect a nation's wealth. Smith refutes this, saying that these trade barriers harm your nation by denying it access to better products abroad, and that free trade is the real answer. A pioneer of what would be called the "classical period" of economics, Smith introduced the concept of the "invisible hand", explaining that economies can self-regulate when left free through free trade, in the extent to which self-interest benefits society as a whole. Smith also asserts that the richest countries are those that master the division of labor. He explains that having workers complete a specific step in the pin-making process is much more efficient and productive than one worker making an entire pin. Smith warns that there is a limit to the division of labor and specialization, namely the “breadth” of the market. Exchange can only take place with goods and services that people want, as evidenced by the forces of supply and demand. This leads Smith to discuss the natural price of a product, which is always determined by supply and demand. These will always control costs, and Smith also points out that many factors can cause a price to vary above or below its natural price, but it will always be close to a natural price. This is what Anne Robert Jacques Turgot's theory of a balanced equilibrium price between supply and demand prefigures. This also applies to labor: Smith explains that as a company's demand for labor increases, it raises its wages to quickly attract labor when she needs it. This is again foreshadowed by Turgot, as he states that the goal of both parties is to maximize profits and minimize costs from the transaction, as any price will be based on the parties' level of need rather than a real price. Keep in mind: This is just a sample.Get a custom paper from our expert writers now.Get a custom essayAlthough Smith's The Wealth of Nations is fundamental in itself, early economists such as Mun and Turgot sowed several seeds that Smith watered into the lasting influences of classical economics..