Adam Smith Tax LLC was named after the economist and philosopher Adam Smith who lived over 200 years ago. Adam Smith is commonly regarded as the father of economics. He was famous for his book An Inquiry into the Nature of and Causes of the Wealth of Nations. He was born in 1723 at Kirkcaldy, Scotland. At the age of 14, he studied at Glasgow University and when he was 17 he received a scholarship to Oxford. He was educated there for 6 years then went back to Kirkcaldy where he gave several lectures on literature, jurisprudence, and all branches of philosophy. At the age of 27, he became the Professor of Logic at Glasgow University then after a year he was promoted to Professor of Moral Philosophy.
Smith's first book, which he published in 1759, was the Theory of Moral Sentiments, which examines individual human intention and activities. This piece of work addresses two main questions; "wherein does virtue consist" and "by what means does it come to pass." Although this book did not cover economic concepts, it did discuss desire and "the invisible hand" which seemed to be an introduction for his second book. He corresponded with the leading thinkers of his time. This book became an overnight sensation and Smith became famous.
During July of 1764, Smith began writing his greatest masterpiece which would take him the next twelve years to complete. During this time, he befriended the French philosopher d'Alembert whom played a leading role in Smith's thinking. After six years of living in Kirkcaldy, he moved to London still having to finish his book. He finally published his five book series of An Inquiry into the Nature and Causes of the Wealth of Nation in 1776. In this work, he covers concepts such as the division of labor, free markets and international implications of Laissez-Faire. Smith argued that the main cause of prosperity was increasing division of labor.
It was Smith who plotted the insightful ideas to explain the framework of the free market. The invisible hand is Smith's most memorable image. He used it to demonstrate how self-interest guides the most efficient use of resources in a nation's economy. Smith realized that to understand social struggle properly, it is necessary to trace how it evolved through history. He emphasized that wealth is increased by the skill, dexterity and judgment with which labour is applied in any nation. He originally thought of the idea Laissez Faire - free trade - which was unrestricted by tax or other controls and allowed the "invisible hand" of the market to proceed with its work.
Smith was against Mercantilist protectionism, which was the practice of artificially maintaining a trade surplus on the erroneous belief that doing so increased wealth. He argued that trade opened up market for surplus and provided merchandise at less cost. Smith strongly believed that the government played an important part of the free market, for he claimed that public services should be charged to users in proportion to their use.
In conclusion, Smith's works were both an investigation on the science of economics and a guide for the understanding the wealth of a nation. He believed that economic development worked best in an atmosphere of free competition that was guided by the "invisible hand."