The Father of Economics, Adam Smith

"The Father of Economics", Adam Smith (1723 – 1790) was a Scottish economist and philosopher. He was born in a small town, Kirkcaldy near Edinburgh in Scotland, and was the son of the comptroller of the customs.

1. Life and Background
Adam Smith entered the University of Glasgow when he was 15 years old, studying Greek literature, mathematics, and ethics. He also studied moral philosophy under "the never-to-be-forgotten" Francis Hutcheson, a mercantilist. In 1740, he shifted to the Balliol College of the University of Oxford to study because England was stronger both in agriculture and economy than Scotland's. He met the philosopher David Hume who became one of the closets of his friends there, and was influenced by Hume's treatise, Human Nature. At the age of 25, he began delivering public lectures, rhetoric in Edinburgh, and then he assumed the professor of the University of Glasgow. In 1752, he transferred to the chair of moral philosophy that was a lecture of Smith's mentor, Francis Hutcheson. Smith's lectures covered the field of ethics, rhetoric, jurisprudence, and political economy, or "police and revenue". In 1759 he published Theory of Moral Sentiments, embodying some of his Glasgow lectures. This work gave him his reputation. At the end of 1763, he left Glasgow to become tutor to the young duke of Buccleuch, and he travelled France with his pupil from 1764 until 1766. In his travels, he came to know French physiocrats and philosophers such as Voltaire, Rousseau, and Franklin. After travelling, he devoted much of the next ten years to his magnum opus, An Inquiry into the Nature and Causes of the Wealth of Nations which appeared in 1776. He also plunged studies of philosophy, history, and politics. He was appointed the president of the University of Glasgow in 1787 and died in Edinburgh on July 17, 1790.

The period of his time was before the Industrial Revolution. Merchant capital had been growing in cities, and manufacture became as new way of production in rural communities that time. Adam Smith could be called the economist of the age of manufacture. The beginning of large-scale industrial capitalism based on division of work affected his ideas; the whole society is similar to workplace doing division of work, the manufacturing industry is also important with commercial and agriculture industries. In 1776, however, the Industrial Revolution just began when An Inquiry into the Nature and Causes of the Wealth of Nations appeared. The theory of economy which worked after the Industrial Revolution was described by Smith before the Industrial Revolution through An Inquiry into the Nature and Causes of the Wealth of Nations. It could make sure Adam Smith was the father of economics.

2. Career and Achievements
Adam Smith studied at the University of Glasgow, and then had studied by him self at the University of Oxford for six years. This was because there was no substantial education at Oxford. On returning to the University of Glasgow, he was appointed professor of logic (1751), then the chair of moral philosophy (1752). Economics was not an independent subject yet, so it was included moral philosophy in that time. This fact could be known that Smith's ideas were the beginning of economics.

Smith published two books, Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776).

● Theory of Moral Sentiments
This theory was concerned with the explanation of moral approval and disapproval. From Smith's question; Why do we regard certain actions or intentions with approval and condemn others? People's opinions in the age of Smith were separated as two kinds; the law could judge what was right or wrong, and another was the moral standard which could be like mathematics formula. However, Smith presented new way of judgement within these arguments. He stated that everybody has lived with a moral sense which can see what is right or not. According to Smith, this sense called "sympathy" could be able to provide in social organisation. Thus, ethical emotion is a result of human nature, not human reason. This means that social organisation is seen as the outcome of human action but not necessarily of human design.

● An Inquiry into the Nature and Causes of the Wealth of Nations
This book became the first systematised economics book, and contributed theoretical and practical knowledge about economy. In this book, Smith claimed that free trade must be established proliferation of division of work being to increase people's wealth; he also warned monopolisation and protection in market by the Government are more harm than good. "A vast and stinging critique of the crippling regulation of commerce and trade that was then current, it argued that if people were set free to better themselves, it would – 'as if by an invisible hand' – actually benefit the whole of society" (Adam Smith Institute 2007, para. 6).

3. Context of His Age and His Ideas
When he published An Inquiry into the Nature and Causes of the Wealth of Nations, the Industrial Revolution just began. England as an agricultural country exported food but the manufacturing industry just produced only fabric made by small farmhouses or minor enterprises. Nation's policy was mercantilism following regulation that defined labours cannot be able to move freely, and incomes are controlled. However, mercantilism was not affect because of the movement of population from rural communities and prevalence of contraband. As a result, new industrial capitalists and people in the city wanted to get free economic activities. Adam Smith's ideas were welcomed because his ideas were what they wanted.

"It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantages" (Smith 1776, Book I, Chapter II). Through his book, he demonstrated that major motivation of human nature is pursuit of their own profits. In addition, there were basic regularities in the world, so whole social profits composed of individual profit naturally. He thought that these theories could be archived in the market by price called "the invisible hand". The basis called "laissez-faire" of this view was that a good economic system on field could be created when the government has less interference. In this view, the government must become small. This means that the government would arrange just the defence of a country, the public safety, and public enterprises, also against protective trade and claimed free trade.

4. Strengths or Weaknesses
In United States of 1929, the Wall Street Crash showed the weak point of Smith's "invisible hand". The Wall Street Crash of 1929 was one of the most devastation stock market crashes in United States' history. People believed that we had just waited to become quiet of the crash because market could be reduced by its self. However, there was no "invisible hand" there. For solving this panic, new government policy called "new deal" appeared by Roosevelt who was the thirty-second President of the United States. Free trade from laissez-faire also has not proved that the rich-get-richer and the poor-get-poorer. However, although his ideas have been weak, his ideas are still the basis of modern economics and still working. Adam Smith created the theory which could be proved the Industrial Revolution, capitalism, and modern economics before it happened.


Adam Smith Institute 2007, ‘Adam Smith’, Adam Smith Institute, viewed 29 August 2007, <>.

Smith, A. 1759, The Theory of Moral Sentiments.

Smith, A. 1776, An Inquiry into the Nature and Causes of the Wealth of Nations.

www . JYHWANG . com

Adam Smith

1. Biography
• June 5, 1723 (baptism) in Scotland – July 17, 1790 in Scotland
• Philosopher and political economist
• Key figure; Scottish Enlightenment in 18th Century
• Known as "The Father of Economics"
• Schools: Glasgow University and Balliol College of the University of Oxford
• No personal papers remained
• Never married, a close relationship with his mother

2. Main Ideas
● Laissez-faire
• Short for "laissez faire, laissez passer" in French, which meaning to let things alone, let them pass.
• Laissez-faire has since become the synonym for free market economics.
• The basis of this idea is that a good economic system on field could be created when the government has less interference.

● Books
The Theory of Moral Sentiments (1759)
• "Standards of ethical conduct that hold society together, with emphasis on the general harmony of human motives and activities under a beneficent Providence" (Chew 1996, para. 2).
• New liberalism.
• A social organisation is composed of the outcome of people's actions; it is not from people's intentions.

An Inquiry into the Nature and Causes of the Wealth of Nations (1776)
• "A vast and stinging critique of the crippling regulation of commerce and trade that was then current, it argued that if people were set free to better themselves, it would – 'as if by an invisible hand' - actually benefit the whole of society. The book influenced thought and politics profoundly, and was one of the foundations of the era of liberal free trade that dominated the Nineteenth Century" (Adam Smith Institute 2007, para. 6).

● Adam Smith Quote
On The Invisible Hand,
"It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantages" (Smith 1776, Book I, Chapter II).

3. Social Context of Times
• In the period known as The Enlightenment, Eighteenth-century Europe happened significant changes based on culture by religious problems such as weak faith to God.
• "The concept of a single, Europe-wide movement may of course be challenged in detail: it does reflect a cultural dominance of French thought" (Kids.Net.Au 2007, para. 7).
• Anti-slavery movement
"The growth of humanitarian feeling during the Age of Enlightenment in the 18th century, the spread of the ideas of Jean Jacques Rousseau and others, and the increase of democratic sentiment led to a growing attack on the slave trade. The French Revolution had a great effect not only in the spread of agitation for human rights but more directly..." (The Columbia Electronic Encyclopedia, para. 1).
• Interest in new ideas and awareness of world
• Emphasis on rights and liberty

4. Reception of Ideas
"In 1759 he published his The Theory of Moral Sentiments, embodying some of his Glasgow lectures. This work, which established Smith's reputation in his day, was concerned with how human communication depends on sympathy between agent and spectator (that is, the individual and other members of society)....He bases his explanation not, as the third Lord Shaftesbury and Hutcheson had done, on a special 'moral sense'; nor, as Hume did, on utility; but on sympathy" (Wikipedia 2007, para. 4).

5. Relevance of Ideas
• "The Wealth of Nations, one of the earliest attempts to systematically study the historical development of industry and commerce in Europe, as well as a sustained attack on the doctrines of mercantilism" (Wikipedia 2007, para. 1).
• The modern academic discipline of economics
• Free trade, capitalism, and libertarianism
• Help turn Europe into a free trade domain, for example, European Union.
• See also, Industrial Revolution

6. Strengths or Weaknesses
• If there is no government, would a social organisation be developed because it is influenced on Laissez-faire?
• On free market, is every country developing or developed?
• There was no "invisible hand" on Black Monday in United States.
• The rich-get-richer and the poor-get-poorer.


Adam Smith Institute 2007, 'Adam Smith', Adam Smith Institute, viewed 8 August 2007, <>.

Chew, R. 1996, 'Adam Smith', Lucidcafé, viewed 8 August 2007, <>.

Kids.Net.Au 2007, 'The Enlightenment', Kids.Net.Au, viewed 8 August 2007, <>.

Smith, A. 1759, The Theory of Moral Sentiments.

Smith, A. 1776, An Inquiry into the Nature and Causes of the Wealth of Nations.

The Columbia Electronic Encyclopedia 2007, 'The Antislavery Movement', 6th edn, The Columbia Electronic Encyclopedia, Columbia University Press, <>.

Wikipedia 2007, 'Adam Smith', Wikipedia, viewed 8 August 2007, <>.

Accused: The Man Who Threw Rocks on the Freeway

North, East, West, and South; NEWS

Although the origin of the word 'news' is unknown, it could be identified that news has dealt with every event and problem. Referred to by the Collins COBUILD dictionary, news is information that is published in newspapers and broadcast on radio and television about a recently changed situation or a recent event in the country or world or in a particular area of activity. The two newspapers in this essay are The Sydney Morning Herald, a broadsheet and The Daily Telegraph, a tabloid. Both newspapers are published daily in Australia but each newspaper uses different way to convey information. This essay will compare and contrast methods of expression, news values, and key themes between both the newspapers of the same story, on the same day.

Two daily newspapers, The Sydney Morning Herald and The Daily Telegraph which were published on Tuesday, 24 July, 2007, reported about an accused man who threw rocks on the freeway. According to both the newspapers, the man, Peter Hodgkins, 25, who was at home on bail, was arrested two days ago in Kiama Downs. About 3.15 am on Sunday, he throw the rocks from the end of the Princes Highway, then a traveller, Nicole Miller, 22, who was a beauty therapist, was struck by the rocks he threw that smashed through a rear side window of her friend's vehicle. After the incident, she has needed the support of a breathing machine in Wollongong Hospital because the rocks thrown by Peter Hodgkins had crushed her skull and injured her face. Both articles wrote information about the rock thrower, Peter Hodgkins. According to his own profile on MySpace, a social networking website, he is a devoted single father, loves his daughter and earns less than $30,000 a year. In addition, two articles reported how he was arrested and how he had got bail.

Both newspapers were similar and different in their methods of expression, news values and key themes. Firstly, methods of expression such as headlines, photographs, and article's placement, are completely different between each newspaper. The Sydney Morning Herald wrote "The man accused of throwing the rock" and "The woman fighting for her life" in the headlines on the left section of the front page, and inserted photographs showing the man, Peter Hodgkins, whose face is affected as mosaic design and the woman, Nicole Miller, who is smiling without mosaic design. On page 3, The Sydney Morning Herald also wrote "At home on bail: the man accused of freeway rock attack" in the headline, and also inserted the same photograph as the front page with a sub headline, "Charged…Peter Hodgkins was arrested after a tip-off". However, The Daily Telegraph wrote a different headline which stated, "Friends shock at rock arrest" on the left section of the front page, and inserted a photograph showing Peter Hodgkins without any distortion effect. On page 5, this newspaper used the headlines, "Secrets of rock attack suspect" written by the biggest point typeface in this page and "Loves daughter, idolises dad…in deep trouble" by smaller point typeface than Secrets…'s. Moreover, there were three photographs on this page, one of these photographs showing Peter Hodgkins, which is the same photograph of The Sydney Morning Herald's but no mosaic effect and showing the half of the his body with tattoos, especially 'PAYABLE ON DEATH', and two of the photographs showed the woman and the damaged car with a broken window. Even though the two newspapers used the same photograph showing the man, their treatments are quite different. According to Sheley and Ashkins (cited in Davis 1981, p. 492), pictures of crime news presented in newspapers reflect on the public’s conception of crime. In this case, the tabloid content of The Daily Telegraph made fear and anger more than content in this article's from the man from using his smiling with the finger in contrast with the smiling woman.

Secondly, news values of the two articles are similar. Even though the two articles were written about crime, the flow of stories followed an entertainment form. In terms of these stories, 'human interest' and 'emotional appeal' may be defined as the news values. For example, the broadsheet, The Sydney Morning Herald did not avoid typical tabloid content. In the beginning of this article, The Sydney Morning Herald wrote the facts, Peter Hodgkins was logged on to his social networking website, MySpace after being charged and his hobbies are fishing and surfing. These facts were not directly relevant and necessary in order to explain this incident in itself, but these are generally relevant to understand the context. Tabloid content that may appear in newspapers and broadcast on radio and television especially shows crimes, sex and celebrities' scandals (Lumby 1999, p. 39). The Daily Telegraph also followed tabloid content through photographs. Additionally, the attractive headlines, for example, 'Loves daughter', which were against this terrible crime, captured the attention of readers.

Finally, the treatments of each article are also similar. Traditionally news can be separated between soft and hard news. "'Soft news' deal with human interest stories and news items considered 'interesting' or 'entertaining'. 'Hard news' deals with 'important' stories and is usually considered to contain more 'hard facts'" (Turner 2006, p. 9). Both articles treated a story focusing the one man and his victim. It is sufficient to define that both stories are soft news. People who have known this story will be afraid but it was simply an accident. There is no plan to be not a victim. As a result, these stories just seem to convey more entertaining facts rather than educational information. However, although the flow of this story is focused on one man, this news carries on hard facts. This means stories of crime still can be defined as hard news.

In conclusion, both newspapers treated the same story about an accused man who threw rocks. Even though they showed the same photographs, the ways of expression are different. Moreover, these headlines are different because both newspapers each focused on different points. It could be defined that they have different target audience. However, the story is obviously crime news as hard news, though the flow of this story seemed entertainment news.


HarperCollins 2003, Advanced Learner's English Dictionary, 4th edn, HarperCollins, Glasgow.

Lumby, C. 1999, Gotcha: Life in tabloid world, Allen and Unwin, St Leonards.

Sheley, J.F. & Ashkins, C.D. 1981, 'Crime, Crime News, and Crime Views', Public Opinion Quarterly, vol. 45, Elsevier North-Holland, pp. 492-506.

Turner R. 2006, 'The News', Media Analysis 1, Insearch UTS, Sydney.

Rupert Murdoch, a Throne, and Tabloid Content

In the world today, people who live in the societies of developed civilisation have been reached by the media. The mass media in terms of the sources of information and news such as television, radio, newspapers, and magazines, are received by large numbers of people. If these mediums derive from one source, can they be trusted? Consequently, can we describe it as success? Rupert Murdoch is one of the most successful and influential media entrepreneurs. This essay will present significant factors of Murdoch’s success, focusing on tabloid content and political connection.

Rupert Murdoch
The hero of nicknames, 'press baron', 'media mogul', 'tabloid journalist', and 'the President of the media empire', Rupert Murdoch, 76, born in Melbourne, Victoria, Australia on 11 March 1931, is the chairman and chief executive officer of News Corporation which is one the world's largest multinational media conglomerates. His father, Keith Murdoch who died in 1952 had financial interests in newspaper companies. One of which being News Limited, published The News in Adelaide, Australia. He wanted young Murdoch to learn and experience journalism assisted by Rohan Rivett, a journalist. When his father died, Rupert Murdoch came back from Oxford University to take over his father's business. He became the managing director of News Limited in 1953. It was the start of his media life. In 1956, he married Patrica Booker who was a former shop assistant and air hostess; the first of three marriages. They produced Murdoch's first of six children Prudence, then divorced in 1967. The same year, he married Anna Tõrv, a probationary employee at his newspaper, The Daily Telegraph. They had three children named Elisabeth, Lachlan, and James Murdoch, then divorced in June 1999. Seven days later he married Wendi Deng, vice-president of STAR TV, an entertainment TV channel in Hong Kong. Murdoch and Deng have got two children Grace and Chloe. Murdoch became an American citizen in 1985 because United States' law states that foreigners cannot own a television station.

"We have no intention of failing.The only question is how great a success we’ll have."
– Rupert Murdoch

The Throne
Rupert Murdoch's company, News Corporation has owned two publishing firms, forty-one newspapers, thirty-four magazines, one record label, three radio networks, five sport teams, sixteen production studios, fifteen television broadcasts, seven satellite television networks, cable channels and platforms, websites, etc ( All kinds of media now exist in his company.

When Rupert Murdoch started his business in 1953, he focused on a circulation of newspaper and profits from advertising to increase because larger numbers of a circulation mean a larger income. In this case, after three years later, he bought Sunday Newspaper in Perth, Western Australia. Three years later, the TV week, Australia's first weekly television magazine, and New Idea, Australia's oldest women's magazine was published by Rupert Murdoch. In 1964, Australia's first national newspaper, a broadsheet, The Australian, was published. Australia's first national broadsheet newspaper by Rupert Murdoch is significant. "Initially based out of Canberra, Murdoch moved The Australian to Sydney, after which his reputation as a serious newsman began to develop" (Carmichael, para. 2). In 1972, Murdoch acquired Sydney's tabloid The Daily Telegraph, which made him one of the three largest newspaper proprietors in the country (Carmichael, para. 2). His reputation as a ruthless businessman was worse in England but he did not cease expanding. One year later Murdoch expanded his business in the United States of America; buying the San Antonio Express-News. In 1976, he bought the New York Post for $50 million, and continued acquisitions the New York Magazine Company and the Chicago Sun-Times (Carmichael, para. 4). By 1984, his company, News Corporation owned over 80 newspapers and magazines. In addition, in 1985 he purchased 20th Century Fox, for $250 million. Rupert Murdoch's business network, worth in excess of $6.7 billion, continues in his dominion among the most powerful media in the world (Carmichael, para. 9).

"I believe too many of us editors and reporters are out of touch with our readers. Too often, the question we ask is 'Do we have the story?' rather than 'Does anyone want the story?'"
– Rupert Murdoch

Page 3 Girls
The Page 3 Girl in The Sun is essential to talk about Murdoch’s success. Rupert Murdoch purchased The Sun, a tabloid newspaper in United Kingdom in 1969. The Sun was contrary to making a profit, lost $5 million per year. Rupert Murdoch made a decision to print half-naked female photographs on page three; page three of a tabloid is frequently read second to the front page rather than page two. His decision succeeded. The Sun was turning a profit. He also purchased The Times and The Sunday Times. In an interview with Pooley (2007, p. 3), Murdoch stated "Sun, with its topless Page 3 Girls on the breakfast tables of a million Britons". This quote shows his reasoning in favour of yellow journalism. Moreover, due to public appeal the same photographs are displayed the independent website,; though not a pornographic site, these photographs are not censored. "News Corporation's British holdings were already highly profitable in 1983. One notorious tabloid, The Sun, contributed 40 percent of the corporation's profit. What prompted Murdoch's move was a mixture of chance and necessity" (Freeman 1996, p. 228).

Page Six
The New York Post's page six is also a special page like page three of The Sun. Page Six portrays 'well-known' entities such as movie stars, sportsmen, or politicians, embarrassed by scandals, ugly photographs or gossip. This is a good example of Murdoch's yellow journalism. According to Johnson (2006), even famous people want to know other famous people's gossip. "Everyone wants to be on Page Six, even if they claim they don't", says Perez Hilton, who runs a well-read celebrity gossip website,, "They try everything to get in there". On Don Imus' radio show Monday, developer Donald Trump joked; "I wish I knew about this. I would have very well been willing to pay hundreds of thousands of dollars to get some of those terrible stories about me out on page six" (Johnson 2006, para. 6). Page Six has officially registered a trademark and has emotionally registered among masses.

The Murdochism from the name of Rupert Murdoch means that the media which is not controlled by Rupert Murdoch is not standard (Pilger 2003, para. 7). This is similar to his priority in media to give people pleasure rather than, or through information."Like all his newspapers, they follow the path paved with his ‘interests’ and his extremism. They echo Murdoch's description of Bush and Blair as 'heroes' of the Iraq invasion, and his dismissal of the blood they spilt. For good measure, his tabloid the Herald Sun invented an al-Qaeda terrorist training camp near Melbourne; and all his papers promote John Howard's parrot-like obsequiousness to Bush, just as they laud Howard’s racist campaign against a few thousand asylum-seekers who are locked away in outback concentration camps" (Pilger 2003, para. 6).

Political Connection
Rupert Murdoch's media is often used by politics because control through media cannot be ignored by anyone; an example of this is that President Bush of the United States of America gave The Sun an exclusive interview in 2003. According to Milbank (2003), the President Bush had not given solo interviews to the New York Times, Wall Street Journal, the Washington Post, Time, or Newsweek when he gave it to The Sun. He also reported that Bush has not given an exclusive interview in his entire presidency to the Los Angeles Times, Chicago Tribune, Boston Globe and dozens of other major publications. "So why did Bush choose the tabloid that last raised international attention by publishing topless pictures of Prince Edward's fiancée? It's because The Sun has huge, uh, circulation….Indeed, about 3.5 million Britons are said to buy it each day -- all of them, of course, for the articles" (Milbank 2003, para. 8). In addition, Scott McClellan, who was a former White House Press Secretary (2003-2006), said the reason why Bush gave it to The Sun because "It has a large readership". Milbank (2003, para. 10) also described the connection between Bush and Rupert Murdoch, "Word on Fleet Street is it's an obvious payoff to The Sun's owner, Rupert Murdoch, the conservative publisher behind many Bush-friendly news outlets such as Fox News. Officials at the White House acknowledge that it was a reward to The Sun for its unstinting support of the United States regarding the war in Iraq".

Rupert Murdoch is one of the most influential people in the world. He is a media entrepreneur and also a business man. Certainly, his success is based on tabloid content; in the beginning, he focused on making profits through larger circulations of newspaper, and then he published Australia's first national daily newspaper, a significant historical event. Though his yellow journalism such as sexual images, scandals, and gossip, in tabloid content has been criticised by public opinion, he recognised well the mass appeal. As a result, he also satisfies the desired knowledge of the public. His experience of the people has made his success through the people. However, even though his success is based on tabloid content, it is not a whole fact because political connection is also around him.

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Freeman, C 1996, ‘Citizen Murdoch-A Case Study in the Paradox of Economic Efficiency’, Journal of Economic Issues, vol. 30, no. 1.

Johnson P. 2006, ‘Page Six of ‘New York Post’ making scandal headlines’, USA Today, 10 April, viewed 6 August 2007, <>.

Milbank, D. 2003, ‘Prez in Topless Tabloid’, Washington Post, 15 November, viewed 6 August 2007, <>.

Pilger, J. 2003, ‘John Pilger finds Murdochism everywhere’, New Statesman, 29 September, viewed 6 August 2007, <>.

Pooley, E. 2007, ‘Exclusive: Rupert Murdoch Speaks’, Time, 28 June, viewed 6 August 2007, <,8599,1638182-1,00.html>.