flos push book - "Adam Smith's Thought Interpretation"

summary

Of course, this Chinese title will be a bit scary, but from the primer in the English title, you can tell that it is not a masterpiece that is extremely difficult to understand. It is an entry-level work, a small book with only 113 pages, which is definitely not difficult to carry around. But don't underestimate him and think of him as an introductory book that is equivalent to not having read it, he is small and refined. The author's words are concise and to the point, and the rhythm logic is also clear and easy to grasp. Reading and writing notes without feeling choppy, great for anyone interested in learning about economics and Adam Smith.

Because I was originally an economics student, I have basic knowledge of many things. Some parts will feel like a refresher, so it will be easier to read. Ordinary people or people with low economic knowledge should remember not to skip the introduction when reading it. The introduction explains some basic theories.

central idea

This part is mainly covered in the introduction part and the first chapter (so again don't skip the introduction). The introduction to Adam Smith in the introduction is "The Moral Philosopher," which I personally like. Because, as Gavin Kennedy said, Adam Smith's two great works, The Theory of Moral Sentiments and The Wealth of Nations, are more works of social science and philosophy than economics, which after all The beginning of learning is Adam Smith. Adam Smith wanted to study the many problems of social injustice, the criticism of mercantilism, and the distribution of property.

So what exactly is "mercantilism" ? It is to measure a country's wealth according to its reserves of gold and silver. Based on this principle, importing from foreign countries is harmful and unprofitable, because it gives the gold away. On the contrary, exporting something is a good thing, so trade is good for the seller. One country can only get richer by making other countries poorer. Then to this effect came import taxes, export subsidies, and protection and even monopoly of domestic industries.

Adam put forward the concept of GDP, which is still used today, and the national wealth is the sum of production and commerce rather than the decision of reserves alone. In this case trade is sure to increase wealth, and when people find a way to coexist with others in exchange and trade, there will be harmony. Freedom and self-interest can automatically create order. (The "invisible hand" is often referred to in later generations)

Wealth of Nations

This is the longest chapter in the book, and the third chapter introduces the entire five volumes of The Wealth of Nations in one chapter. The five volumes cover production and exchange, capital accumulation, history of economic institutions, economic theory and policy, and the role of government. Adam Smith argued that business regulation would be counterproductive, and proposed the concept of GDP to subvert mercantilism. It is pointed out that the maximization of GDP should not limit the labor force but liberate the labor force and support the mobility of the labor force.

In the first volume, the main focus is on the division of labor and specialization to improve efficiency. Specialization is within the company; it can be practiced between industries and even between countries, thereby achieving "expansion to the affluence of the bottom group" . Under specialization, the exchange of high-quality products will be promoted. If the market size is appropriate, wealth can be created by both parties . In this context, Adam Smith launched a discussion on commodity prices and the three factors of production.

The second volume is the accumulation of capital, which is necessary for economic development to create a cycle of capital growth. Money is useless and worthless, it is dead capital. It is under banking and trade that money creates its value. Smith believed that the results of consumer manufacturing and services would reduce the capital of individuals. That is, an individual's surplus for capital maintenance and future expansion. So under excessive consumption, instead of creating a cycle, future growth and production capacity are abandoned. The third volume is the history of institutions.

Volumes 4 and 5 deal with the role of government, but it should be noted that Adam Smith was not a proponent of laissez-faire. In these two chapters, he mainly criticizes government interventionism and mercantilism, as well as the government's role in taxation and public infrastructure. "There is a responsibility that the monarch does not have to bear at all. In fact, no one in the world is smart enough to take this responsibility. This responsibility is to supervise the property of the individual and direct it to the most beneficial place in society." "Any system that tries to allocate resources to Lead into a specific area, then, in effect, he will undermine the grand goals that he wants to promote.”

Moral Sentiment Theory

"The Theory of Moral Sentiments" was Adam Smith's first book, which received a great response back then, but was relatively unknown in later generations, and the prose was not easy to read at all (first-hand experience, it was really hard...). It's not hard to imagine that the content in this book is not that great in comparison. I personally recommend the work of Russ Roaberts, because it is a great book devoted to this prohibitive, and there is enough space to discuss it. The curator's collection No. 4 is that one.

Summarize

It's a great primer, and a great guide when reading the original and getting lost. Those who have read basic economics will also gain a lot when they read it. Therefore, it is also recommended for students who are studying economics in high school to read it.