Adam Smith: Father of Modern Economics
Investopedia・2 minutes read
Adam Smith promoted minimal government intervention in free markets, introducing the Invisible Hand theory to show how self-interest can benefit society. His book "The Wealth of Nations" emphasized efficiency and wealth creation, laying the foundation for modern economics.
Insights
- Adam Smith championed minimal government involvement and taxation in free markets, promoting the idea that individual self-interest can lead to societal benefits through the Invisible Hand theory.
- Smith's emphasis on efficiency, wealth creation, and the transition from land-based wealth to assembly line production methods in "The Wealth of Nations" significantly influenced modern economic principles such as supply and demand, competition, and wealth generation.
Get key ideas from YouTube videos. It’s free
Recent questions
Who popularized classical economics?
Adam Smith
What theory did Adam Smith introduce?
Invisible Hand theory
What book did Adam Smith write?
The Wealth of Nations
What concepts did Adam Smith influence?
Supply and demand, competition, wealth generation
What did Adam Smith emphasize in economics?
Efficiency, wealth creation
Related videos
OpenLearn from The Open University
The Invisible Hand - 60 Second Adventures in Economics (1/6)
History Crunch
Causes of the Industrial Revolution - Video Infographic
Free To Choose Network
Milton Friedman Crushes Man's 3 Questions like Dixie Cups
Ayn Rand Institute
Ayn Rand - What Is Capitalism? (full course)
Hoover Institution
Thomas Sowell -- Basic Economics
Summary
00:00
Adam Smith: Pioneer of Free Market Economics
- Adam Smith popularized classical economics, advocating for minimal government intervention and taxation in free markets. He introduced the Invisible Hand theory, illustrating how individuals pursuing self-interest can benefit society as a whole. His book, "The Wealth of Nations," promoted the shift from land-based wealth to assembly line production methods, emphasizing efficiency and wealth creation. Smith's ideas laid the foundation for modern economics, influencing concepts like supply and demand, competition, and wealth generation.
