The Wealth of Nations

Adam Smith (b. 1723) was a Scottish philosopher and economist who is widely recognized as the father of modern economics. He pioneered systemic thinking about political economy and moral philosophy during the Scottish Enlightenment. His groundbreaking theories on free markets and individual self-interest revolutionized the global understanding of wealth creation.

Born in Kirkcaldy, Scotland, Smith studied social philosophy at the University of Glasgow and later at Balliol College, Oxford. In 1751, he secured a professorship at Glasgow, eventually becoming the chair of moral philosophy. During this academic tenure, he published his first major treatise, which examined the psychological basis of human morality and sympathy.

Smith later resigned his academic post to tutor the young Duke of Buccleuch, a role that allowed him to travel extensively through France and Switzerland. This European journey brought him into contact with key intellectual figures, including Voltaire and the Physiocrats, which greatly shaped his economic theories. Upon returning to Scotland, he spent a decade writing his magnum opus, which analyzed the benefits of free-market capitalism and established economics as a distinct academic discipline. He spent his final years in Edinburgh, serving as a commissioner of customs.

Essential Reading

• The Wealth of Nations (1776): This foundational text explores the concept of the invisible hand, the division of labor, and the economic mechanisms that drive national prosperity.
• The Theory of Moral Sentiments (1759): This influential philosophical work proposes that human morality is driven by mutual sympathy and the observation of an impartial spectator.