13-th topic. Classical economics – extension

A.Smith explained operational mechanism of market economic system with his “Theory of value”.  But, the intensity of his economic analyzes and ideas enough only to excel the successes of mercantilists and physiocrats. Thus, the classical school didn’t focus on human behaviors philosophy of economic processes.

A.Smith approached to events from the point of view of productive forces and development of public wealth. But, these are only beginning parameters for human development.

A.Smith approached to human as motive force of social development. He wrote that, individual and personal interests at the same time help for public interests and development of productive forces. If we will make chances for individuals to realize their personal interests, we will ensure increase of public wealth. 

Smith’s view about personal interests as a base of social development is incomplete philosophical approach. In fact, even the human realizes his personal interests, this is not sufficient for rationality. Because, even his economic interests are sensibly may make conflict against other’s similar interests. The conflicts of the interests are beginning for the “wild” behaviors.

As a defender of free trade and economic liberty A.Smith was against protectionism and monopolies. He preferred elemental economic forces than government lows and recommended to put all economic forces at free economic game’s disposal.

This approach may be true, when every economic subject is rational in his economic behavior.

Smith wrote that, the main purpose of capitalists is profit and this is harmonic with the interest of all society. Because, seeking benefit by individuals finally is helpful for society at all.

Here, A.Smith misses the attention to very important truth. All personal interests aren’t finally helpful for society. Only personal interests based on perfect behaviors are finally helpful for society at all.

Some materials were used from the book of “The history of economic studies” published under  editing by M.Meybullayev

Aghanemat Aghayev