The Wealth of Nations

Definition

"The Wealth of Nations" is the seminal book written by Scottish economist and philosopher Adam Smith in 1776, which lays out the foundational principles of classical economics and argues for the benefits of free-market economies. It emphasizes the importance of self-interest, division of labor, and the invisible hand in promoting economic prosperity.

Related terms

Classical Economics: A school of thought in economics that emphasizes free markets, competition, and minimal government intervention in the economy.

Free Market:

An economic system where prices for goods and services are determined by open competition among businesses without government intervention.

Invisible Hand:

A metaphor introduced by Adam Smith to describe how individuals' pursuit of self-interest unintentionally benefits society as a whole through natural market forces