EconAir

Adam Smith - Our Founding Father INTRODUCTION   This essay on Adam Smith and his famous example of a pin factory also serves as an introduction to some of the themes in the over 100 essays in this blog.   Adam Smith wrote the  Wealth of Nations  during the beginning of the Industrial Revolution. It was published in 1776. The dynamics of the Industrial Revolution continue to be a disruptive force; because of AI, it might be even more disruptive in the future.   ADAM SMITH’S PIN FACTORY   Adam Smith’s description of a pin factory is on the first page of  The Wealth of Nations .  (Chapter 1 – “Of the Division of Labour”)  Drawings of pin factories of this period show workers using hand tools. Smith says the process can be broken down into 18 distinct steps, including packaging the pins. Smith mentions that pin factory workers were poorly paid, despite their high productivity.    Adam Smith says he visited a pin factory empl...

Happy Birthday America! Democracy and individual liberties have survived for 250 years. Slavery was eliminated. The right to vote was extended to all Americans. America innovated the Industrial/Information Revolution and made the country the largest and most technologically-advanced economy in the world. In the 20 th   century, America helped defeat totalitarian regimes. America was an inspiration to all people who wanted to fight tyranny and oppression. From 1607 onwards, America was a special country built by immigrants and their descendants.   The foundation of this remarkable democratic edifice is the Constitution. The basic rules and political institutions were set out. Having denounced King George of England in the Declaration of Independence, the founders were particularly sensitive to the threat of an imperial president. The powers of the president in Madison’s first draft of the Constitution were weakened in subsequent revisions.    The founders, especially ...