Adam Smith Adam Smith was baptized on 5 June 1723 in the Scottish Kirkaldy. 3 Probably he was born on this day, but this is not sure . He was a philosopher, educator and the founder of classical economics. Middle of the 18th century he was professor of logic at the University of Glasgow and 1752 professor of moral philosophy. Since that time a close friendship links him with the Scottish philosopher, economist, and historian David Hume. In 1754, Smith began a well-paid, three-year educational tour of France as a companion to Henry Scott, 3rd Duke of Buccleuch. His major work "An Inquiry into the Nature and Causes of the Wealth of Nations"4is considered the beginning of economics and economic liberalism and inspired many thinkers to their research. Although since Aristotle numerous works have been widely published in the field of economics, they have not been written in such a systematic and scientific way. "Wealth of Nations" is a summary of findings of that time. This may have been the reason why Joseph Schumpeter5 disparagedly remarked in his "History of economic analysis" that Smith's work contained no single thought, method, or analytic principle new to his time. Smith nevertheless influenced many thinkers who followed him, such as Karl Marx, who took up his labour theory of value to the representatives of the neo-classical who, with his "invisible hand" of the market, held an 6 argument against the regulation of the markets . So, for example, Alan Greenspan7 described Smith's "Wealth of Nations" as "one of the great achievements in intellectual History". In addition to the topics of division of labour, foreign trade, the role of the free market, the state and distribution, the theory of value is a much discussed topic - from the early days of economy to today. Adam Smith died in Edinburgh in 1790. This work will focus on Smith's theory of value in contradiction and as a predecessor to the Austrian School and their attempts to solve the value paradox of water and diamonds. 3 I. Ross, The life of Adam Smith, Oxford University Press, Oxfor