works of Adam Smith had a great influence on classical economic theory.First of all, the merit of the author became a clear view of the system, which he gave the economic structure of society.
idea of economic freedom
The most popular ideas of Adam Smith acquired in Europe in the period of formation and development of capitalist relations.Interests of the bourgeois class were to grant her a full economic freedom, including focused on the sale of land, hiring of employees, use of capital, and others. The idea of economic freedom, in practice, no doubt, is a progressive moment in the development of society, as restrained tyranny of monarchs andIt gave ample opportunity to the development of the productive forces of the economic system.
ratio role of the individual and the state in the economic system
philosophical foundations on which rests the theory of Adam Smith, related primarily to production system and distribution of profit, social and ethical standards of economic activity, the state's role in the regulation of economic processes, as well asthe individual actors (stakeholder groups).
From the perspective of Adam Smith, the state should act as t. N."Night watchman".It does not have to establish and regulate economic processes, its main function - to implement judicial, constituent and protective function in society.Thus, the role of government in the economy, from the point of view of Smith, should be minimized character.
As regards the role of the individual, it should refer to the idea of "economic man.""The Wealth of Nations" Smith describes the individual as part of the economic process as a person with selfish orientation, guided in their actions by considerations of personal gain.Action of "economic rights" are built on the principle of equivalent compensation.This principle forms a system of economic exchange, which is a foundation for a natural human activity of a market economy.
Law "invisible hand»
addition to the state and individuals, economic processes in a society governed by certain economic laws.Adam Smith calls them "invisible hand."The effect of such laws does not depend on the will and consciousness of society.However, the economic management carried out on the order of magnitude higher than the control at the state level.In turn, each individual is guided by self-interest, can bring more benefits to society than if he had been focused on the benefits to society initially.
system Wealth of Nations
"The Wealth of Nations" by Adam Smith identifies as the basis of wealth the number of workers in the state entities and productivity of these subjects.The source of wealth is, in turn, is determined by the annual labor of each individual nation, the people, based on the annual consumption.
system of division of labor is a necessary condition for productivity.Thanks to her, in the labor process are improved job skills for a particular operation.This in turn determines the time savings required in going from one working operation to another.The division of labor at the micro and macro levels, as defined by "The Wealth of Nations" Smith, its origin is different.In the process of manufacture specialized job defines the control, meanwhile the national economy functions mentioned above the "invisible hand."
lower boundary of the worker's salary shall be determined by the cost of the minimum resources necessary for the existence of the worker and his family.Also here there is the effect of the material and cultural level of development of the state.In addition, the wage depends on the economic characteristics such as demand and supply of labor in the labor market.Adam Smith was an active supporter of the high level of wages, which should improve the situation of the lower strata of the people, personal incentive financially employee in improving its productivity.
essence profits
Smith offers a dual definition of profit.On the one hand, it is to reward the activities of the undertaking;the other - a certain amount of work, the worker is not paid for by the capitalist.Thus the profit depends on the size of capital employed and is not related to the amount of labor spent and its complexity in the management of the enterprise.
Thus, "The Wealth of Nations" by Adam Smith formed a special understanding of the human society as a giant mechanism (machine), the correct and consistent movement which should ideally provide an effective outcome for the entire society.
Smith later idea that to make a profit every individual should proceed from their own interests, has been refuted by the American mathematician John Nash.In his view, there are situations in which there is a "disadvantage" (negative amount or a win-win relationship).At the same time, Nash notes the fact that the behavior of economic agents respond to cultural norms (non-violence, treachery and deception).Atmosphere of trust between the subjects considered by Nash as a prerequisite for economic well-being of society.
