Preparing with my lecture today for my marketing
learners and browsing my research journals for my up and coming final data
gathering and publication I always see to it that I have the caffeine in my
system to start the boost. Gladly today I discovered a new place to kick start
my long day of reading and writing different academic writeups of my
learners. This new Coffee Shop is not
far from my office, but it is not in the Faculty of Business anymore. The new Coffee Shop is in the vicinity of the
Faculty of Fine Arts Building. Obviously, when I entered the Coffee Shop
creative paintings from the students I suppose allure my mind and I start to
think freely outside the mindset of the business theory perspective. Relative
to my Business subjects that I’m teaching at the moment are connected to the
fundamental theories of Adam Smith. Not
because Adam Smith is one of the fathers of Capitalism but because renowned
Professor Sandel always adopt the concepts and theories of Adam Smith. And up to this very moment the heart of the
American economy is still following the fundamental concepts and theories of
Adam Smith. Adam Smith consider Business as a Philosophy when the concept of
social science and economics in particular can be studied like chemistry and
physics that one given concept can be re-engineered and can be manipulated
according to the soothed flow of economy given. Thus, consider the innovative
concepts of this fine arts student’s imagination will always bring new ideas,
according to Einstein imagination is everything. Thus, in the book of Adam Smith Wealth of
Nations as I’m starting to read the few chapters of the book and connecting it
to my main text of instruction to my students I discovered vividly that Adam
Smith’s theories inside the book of Wealth of Nations are having some blind
spots in terms of the Human Resource side that if you consider the time when
Adam Smith created his various theories of economics it is also the time of the
economic boom in Europe. As a result,
Karl Marx has a contradicting concept of his socialism theories that both
economic philosophers linger in the minds of the modern philosophers like
Michael Sandel and Noam Chomsky. As an
adolescent genius attending the university of Glasgow he manifested the creed
of the university as the hotbed of the Scottish Enlightenment.
Glasgow was also a center for trade livestock which
some biographers believed that Adam Smith nurtured his mind of creative
thinking in terms of the many Philosophies he contributed in the modern economy
of America. As Smith engineered the
advance system of economy that he wanted he also need the aid of Science to
collaborate the scientific insights that can contribute to his present
studies. As I conceived, Adam Smith is
so artistic in his imagination and thinking that he can formulate a certain
kind of system that can start the economic engine of the nation. The first
chapter of the book considers the importance of labor in the economy. Labor by
history of economy is one vital part that without it economy will not move not
by theory but by practical business practice itself. Thus, Smith emphasize the importance the
division of labor in chapter one of his book. The concept inside the book the
wealth of nation was created last 1776 in London. This book further attempted to explain the
process by which market and production actually operate in society. The two fundamental things that Smith
emphasize in his book is the absolute advantage and the division of labor.
Absolute advantage refers to the ability to produce a good or service more
efficiently than it can be produced elsewhere.
In this concept America also strengthen their education system
specifically in the field of science and technology to address the skill and knowledge
need for the production of goods to supply the general public. Skill and
knowledge of work is very important in the concept of division of labor. At present we can observe that division of
labor are also driven with the hierarchy of the knowledge being acquired of
every person doing the job given at hand.
Thus, skill, dexterity, and judgement are emphasized in the theories of
Smith.
Smith redundantly discuss in theory the importance of
labor in the wealth of nation. Human
resource of the nation is actually the source of wealth. The economic and political machine
orchestrated by the fundamental bounds of the theories created by Smith shows
the power of labor in the society as a whole. As labor is the major good that
can be given as a service to the general public giving special and specific
skill that will allow a higher quality of output. The next concept and theory of
Smith that discusses the rendering of service with an exchange for a good. Long time ago barter is the only way that a
service given by a person with higher skill for a given task will be given a
good in exchange for the service. But
with the complexity of the right value of exchange for a service comes as a new
dilemma at that time fair equivalent value of the service rendered are being reciprocated
with monetary currency good. The issue
of the standard of value of the exchanged of good in barter sometimes will
create a conflict in terms of defining the right value. Thus, the monetary concept of Rome in terms
of money or Gold coin at that time of Smith is very valuable and convenient to
use with the theory of the different hierarchy of labor. Money is one technology that collaborates the
functions of specific service rendered to the general public. Thus, specialty in specific field of skill
can render only his or her skill to the man power of the nation and in return
get paid by money. The term Pound used
in the England relates to the actual weight by pound of goods. So, in everything either goods or services
rendered to the national and international must have an equal and standard
value in exchange of the good or service.
In terms of service, if the work needs higher skill with high risk the
monetary exchange is also more valuable.
But today the
value of the precious silver that the Romans are getting crazy of is not the
same anymore. In other words value of
money change in value. In fact the
problem in the modern stock market today is when the value of a single currency
is keep on fluctuating that stability of currency will disturb the whole of the
labor market and the national and international economy. As a result, the dependence of society
towards money came to a stage of economic and political conflict. Some group of countries like the EU tries to
unite their currencies that later lead to a failure of economic management
given the results of the Greek crisis and the Brexit. Though the American dollar seldom fluctuates but
the credit housing crisis that happened in American suck all the monetary value
of the world through the ripple effect of the world trade and banking system. At this very moment, do you think the concepts
and the theories of the famous Adam Smith is still reliable in the modern
world. As the world is becoming flatter
hypothetically what could America give to the “World”. There are many try outs now a day in terms of
the economic future and stability. The
famous Bitcoin for example is a try out to allow the online currency more equal
in terms of value. Stability of value is
always the issue since Adam Smith introduce the exchange of value of a labor
rendered. Do you
think Bitcoin will be accepted in the future of world economy or are we going
back to the exchange of actual goods in terms of barter change. Many money skimming business today for
example are only playing and rotating the money without any actual goods.
Sometimes in a negative way the actual value of money
is already gone and that is what happened in the housing bubble in
America. Maybe, world economy and the neo
Adam Smith of today like Michael Porter and others who believe in the concepts
of Adam Smith will consider also not only from the bounds of the theories of
Adam Smith in terms of labor but also to the actual situation of the world
market and economy. Indeed, business and
economy needs the help of Arts in order to creatively modify and calibrate the hiccups
of the teachings of Adam Smith adopted by governments and the world as a whole.
Adam Smith himself I believe uses his
creative mind to innovatively create the economic machine of labor and market
and the wealth of nation. But to the
respect of the economic genius, Adam Smith’s theories must also be upgraded in
terms of the functions inside the political and economic machine being followed
as the legal business and economic laws of the many governments of the world. Do
you think Michael Porter and the present artist of our world economy can
predict and save the future of the world’s political and economic challenges?
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