The book “The worldly philosophers” is an analysis of great minds’ contributions to the field of economics with a broader view of crucial economic aspects that include political and social factors. In that respect, this analysis summarizes the author’s view of what economics comprise of in light of their analysis of different economists’ contributions. Further, the analysis explains the author’s view on the subject of comparative advantage citing the book’s strengths and weaknesses as well as the author’s position on the subject. Finally, the analysis provides reasons for agreeing or disagreeing with the authors’ position.
1. Summary of authors’ view on what economics comprise of
According to HeilBroner in his review of Adam smith’s contribution, economics is all about concepts of wealth production, exchange, distribution and consumption. In that respect, those are the concepts that feature in his review of Smith’s wide array of literal work on the subject with the best summation of the concepts being in his analysis of the book “Wealth of nations”. In that book, Smith’s definition of economics is a science that deals with wealth which comprise of transacted goods and services while his view on production revolves around its determining factors which he defines as being capital, land and labor. On the other hand, Smith views exchange as an economics concept since the produced goods and services requires to be exchanged between economic units for the purpose of achieving a balance between surplus producers and consumers. In regard to distribution, Smith’s view is that the concept deals with allocation of the exchanged goods and services between a society’s units. Finally, Smith’s view on consumption is that it covers utilization of the produced and distributed goods in order to satisfy society’s needs. (Heilbroiner, 1999)
Further in Heilbroner’s view, Adam Smith’s contribution also defined economics in terms of division of labor which is well reflected in his “Wealth of nations” book in which he describes private individual’s actions as being self serving. In the book, Smith concludes that freedom in the markets’ operations leaves the players to effectively allocate resources hence generating results that suit and qualify as good for all. That conclusion is the basic aspect underlying economics according to Heilbroner in his book’s analysis and review. (Heilbroner, 1999) in addition, in his contribution on the invisible hand’s operations, Heilbroner in reference to Adam Smith believes that market forces’ guided labor division produces and delivers freedom and justice. From this view, the author comes out as a defender of capitalism system which he referred as the commercial society and which he endorses as superior compared to any social ordered social-economic system. In that respect, Adam smith views that given justice and freedom, the society was capable of endogenously producing a suitable social order to coordinate economic and...