An Inquiry into the Nature and Causes of the Wealth of NationsAdam Smith

An Inquiry into the Nature and Causes of the Wealth of NationsAdam Smith

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In 1776, Adam Smith completed and published “An Inquiry into the Nature and Causes of the Wealth of Nations”, more commonly referred to as simply “The Wealth of Nations”. In this document, Smith analyzed wages, labor, trade, population, rents, and money supply (Andrea, 151). Because of his work, Smith is known as the founder of the academic study of economics and the father of capitalism. The kind of economy Smith envisioned and described in “The Wealth of Nations” resembles capitalism, as well as promoted a free market. Smith also spends a great deal of time arguing against mercantilism, which was largely popular at the time. Throughout Smith’s work, he talks about self-interest, embodying the Enlightenment obsession with human nature and progress. All in all, Smith helped shape the modern views on economics today.
Smith says in his explanation of “The Wealth of Nations” that self-interest is an important component of economics. He argued that with private individuals owing business instead of the government, an economy would gain the greatest financial reward and maximize the economic well-being of a society (“Invisible hand”). Through his series of explanations and ties to self-interest, we are introduced to a view of capitalism. He believed that private individuals should control most of the economy. Within his view on capitalism, we are introduced to Smiths promotion of a limited government. He believed that the people should hold more power than the government. This view, of course, fits in with his policies on self-interest. Smith also envisioned a world with a free market. He explained that governments should keep taxes low and allow free trade across borders by eliminating tariffs (Beattie).
Smiths document “The Wealth...

... middle of paper ...

... should operate, the world would be a largely different place today.

Works Cited

Beattie, Andrew. " Adam Smith And "The Wealth Of Nations" ." - Your Source For Investing Education. N.p., 17 Apr. 2009. Web. 21 Sept. 2011. .

"Grad Student Madness: Adam Smith "The Wealth of Nations" (1779)." Grad Student Madness. N.p., 14 Jan. 2007. Web. 21 Sept. 2011. .

Moral, an "invisible hand" (a term first used in his Theory of. "Adam Smith Wealth Nations." faith vs reason debate spiritual insights quotations quotes aldous huxley perennial philosophy. N.p., n.d. Web. 21 Sept. 2011. .

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