TOKOH EKONOMI 5 "ADAMS SMITH, AN INQUIRTY INTO THE NATURE AND CAUSES OF THE WELTH OF NATIONS (1776)

Adam Smith is the biggest filsuf and scientific from Scotlandia birth. He is a profesor in falsafah science of university Edinburgh famous universty of this age. At flest he is interisting for logical and etchic and after seriosly problem-problem economic. Well in domestic problem although international problem. He usualy discousion with scintific phsiokrasi mazhab, like as Quesnay and Turgot. Adam Smith is a founding fauther classical mazhab. After to publish his the book "AN INQUIRTY INTO THE NATURE AND CAUSES OF THE WELTH OF NATIONS" an idea Adam Smith there that is the book, essence he's idea this people's it is best to basicly of the law nature( the order of things accroding to natural law). This behavior of human according to natural six motivation: 1. Imported of self, 2. The bsicly influence sympty unsure an the realitionship human and human, 3. propensity free liberalism, 4 Tendency in human behavior of guarding moral ethic, 5. Habbit a work, 6. Tendency do trade in the market. So, he is opinian to each individu-individu the most accept whatever self needed. At people must to give probabilty and freedom behavior with memelihara importaned is self. Consequency in this policy/idea will make to competetion people to people and exploid man and man. At last, competited make to walfare andmodern of human's. The behavior of individual-individual will to alm of invisible hand and make to optimun result. What is this invisible hand? There are invisible hand power of power that inclined carry on economic equilibrium condition( market mecanism). Where is role government? Role government is to reduce and guarding market mecanism smoothy to wolk. To notted monopoly. To streng them Quesnay-Turgot to word of laizsez faire, laissez allier. Important value in use and value in exchange. Value in use: value that linked with utility in used for life. Exsemple: water, oil, rice etc. Value in exchange: Goods value in exchabge with other goods. Exsemple: diamond, gold, silver, money etc. More countinued this problem will to be come study econom-econom clasical mazhab and neo-clasical mazhab. Adam Smith also to throwed other idea, labor theory of value. End layer terrace value something out put to measure with total cost labor productivity/ labor cost theory of value. Economic scienece history (Sumitro Hadi Djoyokusumo)