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The Wealth Of Nations

The Wealth of Nations

Introduction
Modern day economic theories owe its existence largely to the classical and neo-classical economists. Adam Smith, a neo-classical theorist, is considered to be among these economists who laid the foundation for modern day economics as well as social, political and ethical aspects that relate to it. In his famous work, The Wealth of Nations, Smith explores the various dimensions and channels through which nations can create wealth; he enumerates on the importance of division of labor as well as the key role of exchange. Even though Smith receives much criticism for his work as limited in its scope but it is this author's thesis that Smith's work, The Wealth of Nations, presents a commonality and applicability of principles that even people of today can find in society and nations.

Background
Scotland during the early 18th century severely lagged behind England due to the poverty stricken economical conditions. The Scots were not only comparatively less educated but they also did not have a rigid political system to compete with England. For this reason, there had been no clear reform or policies for the development of its people. The elite group depended on the feudal system to fund their living and lived luxuriously as compared to the majority working class who could merely think of primary food stuffs as the basis for working. Smith seeing the poverty stricken condition of the Scots at the time thought of the factors responsible for their poverty and juxtaposes England as superior because of its organized political and legal system. Furthermore, since the Scots largely depended on agricultural land for survival and even future economy, most of its people were laborers and farmers working at minimal wages or at the least for themselves. Trade with neighboring England in 1707 had been minimal and limited to certain agricultural commodities such as beef which did not earn the Scottish much revenue. (Easton 99).

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