Smith and economic continuity

A pioneer of his time, Smith has now become known as the father of economics, with his ideas being the basis of modern economic standards. Most notable for his book "The Wealth of Nations," Smith also wrote another book titled "The Theory of Moral Sentiments." Both which harbor his great economic zeal. Throughout his work, Smith pushes, above all, the idea that for an economy to thrive, it must also coexist within a thriving population. I.e. for economic flourishing to occur, inevitably there must also exist human flourishing.  

Within Smith's writings, his philosophies rely heavily on the ideas of self-interest and maximizing return. Each person, by looking out for his or her own needs, will inadvertently create the best possible outcomes and situations. "It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect our dinner, but from their regard to their own interest," Smith wrote. In a society where people, all specialists in a specific area, work to meet their own needs in the best way possible, their efforts will, in turn, benefit the society as a whole. Smith created a metaphor to better explain this known as the invisible hand. Smith explains that within a society based upon individual self-interest, flourishing will occur by an "invisible hand" that guides supply and demand, creating the greatest good for all. each individual focusing on their own needs will essentially benefit the group as a whole. And within a society solely driven by self-interest, the greatest flourishing occurs, through the help of the invisible hand as Smith explains. 

Though Smith focuses heavily on self-interest, he also stresses the idea of the division of labor. Another popular example by Smith is the work it requires to make a pin. If it requires 18 different steps to create a pin, one man accomplishing every step will only make a handful of pins a week. But if those 18 steps were rather divided among 10 different men, then production would increase to thousands of pins a week, rather than the unsatisfying handful made by the one person. Smith argues that through the division of labor and specialization, prosperity is created. "It is the great multiplication of the productions of all the different arts, in consequence of the division of labor, which occasions, in a well-governed society, that universal opulence which extends itself to the lowest ranks of the people," states Smith.

Adam Smith pioneered many philosophies about the art of economic flourishing that have become cornerstones in today's world. But it wasn't through single-minded thoughts that Smith became such a scholar. Understanding the relationship between human flourishing and economic liberty was what stood Smith apart from others. More than that, though, Smiths ability to understand that an unbreakable bond between the two must be in place for true flourishing to occur has made Smith as great as he is.