Overview of Adam Smith´s The Wealth of Nations

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Adam Smith was an economist who lived in the 1700s. He summarized his view of how his market run economy worked in The Wealth of Nations, published in 1776. Among other things, he addresses two major facets of this economic system, the first being how the market is driven on the level of individual people, known now as “micro order.” He believed that individuals in will always try to make as much profit as possible, regardless of the people around them. His solution to this greedy self-interest was competition, one of the most important factors to his system. Through competition, greedy self-interested people confronted with other, equally greedy and self-interested people. This would force each person in the system to meet the prices and quality of the others, ensuring only the cheapest and best quality goods and services are successful. Smith also pioneered what he called “The Invisible Hand.” The basis of this idea being that the market will always align with the wants of society. As public interest in one area goes up, so will the quality due to the increase in profit to that are...

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