ABSTRACT
The father of modern economics, Adam Smith, decided in 1764 to leave his professorship in moral philosophy at the University of Glasgow for a well-paid and pensionable post as tutor to the Duke of Buccleuch. The Theory of Moral Sentiments actually contains a psychological model of the process of social exchange that was later incorporated into The Wealth of Nations as a process of economic exchange on markets. In Adam Smith's metaphors, money provides the 'great wheel of circulation' with the function of permitting and supporting enterprise, but money itself should never be confused with enterprise because it 'makes no part of the revenue of the society to which it belongs'. Smith places an emphasis on the relationship between the behavior of men and machines. Smith's emphasis upon the freeing and utilization of human resources means that he can never accept the Physiocrats theory of value and their ideas concerning the sterile class.
