Question

What does Adam Smith mean by wealth? Why is this so significant?

Answer 1

Adam Smith generally regarded as the father of political economics. He defines economics as the science science of wealth. Definitions in terms of wealth emphasize production and consumption. He defined economic in another way as 'the laws of production , distribution and exchange.'

Adam Smith was expressing his thoughts on wealth at a time when England was on the eve of Industrial revolution. According to the Smith wealth does not refer to the only money , it refers to the scarce, goods which satisfy nations need. According to the Adam Smith wealth refers to abundance of money.

Significance : Production, distribution and exchange are the most important keys in the economics. He said that wealth can fulfil all the desires of human being in society. Earning more and more wealth is the motive of human society, he found.

Thus , Adam Smith explained about the wealth.