How the work of Adam Smith could help solve the UK skills gap

Smith – whose tercentenary we celebrate this year – was a pioneer of economics.

Metadata
Provider: 
The ConversationThe Conversation
URL: 
https://theconversation.com/how-the-work-of-adam-smith-could-help-solve-the-uk-skills-gap-210226https://theconversation.com/how-the-work-of-adam-smith-could-help-solve-the-uk-skills-gap-210226
Retrieved on: 
Tuesday, August 8, 2023
Information
Tags: 
Workforce, Learning, Revolution, Technology, Industry, University, Education, Life, Industrial Revolution, The Wealth of Nations, Botany, Prosperity, Gas, OECD, Medicine, MIT, Anniversary, Harvard University, Foundation, Government, Invention, Thought, Chemistry, Student, Scottish Enlightenment, Thermodynamics, Knowledge, Growth, AI, Bank, Wealth, Economics, Success, Social mobility, Management, Renewable energy, Nursing, Creative industries
Geotags: 
SMITH, GLASGOW, UK
Summary
Key Points: 
  • Smith – whose tercentenary we celebrate this year – was a pioneer of economics.
  • He was one of the greatest thinkers the world has seen and an alumnus of the University of Glasgow.
  • Smith’s first great work, the Theory of Modern Sentiments (1759), sets the philosophical foundations for his magnum opus, The Wealth of Nations (1776).

Universal education

    • And the general consensus among Smith scholars is that Smith was in favour of a public contribution towards education, although in the 18th century this related to the provision of primary school education.
    • Smith also argued for universal education.
    • He believed that, to offset the harmful effects of the alienation caused by the division of labour, education had to be accessible to all workers.
    • During his life, Smith saw reforms to university education in Glasgow: new professorships in law, new medical schools and an expansion into new subjects like chemistry and botany.

Productivity problem

    • The recent sluggishness in productivity growth in the UK and some other advanced economies has complex causes.
    • Demand for labour is above pre-pandemic levels, according to the Bank of England’s August 2022 Monetary Policy Report , but supply is below pre-pandemic levels.
    • Also, the quality of education is quantitatively much more important than the quantity of education for sustained economic growth.

Working with technology

    • MIT economists Daron Acemoğlu and Simon Johnson discuss this in their new book Power & Progress: The Thousand-Year Struggle Over Technology and Prosperity.
    • In essence, this means ensuring that new technologies like AI do not substitute people, but complement labour to boost productivity.
    • His fundamental belief in the value of education to society will continue to stand the test of time.
Copyright: 
2023 The Conversation. All Rights Reserved.