The Wealth of Nations & The Theory of Moral Sentiments (eBook)

Adam Smith was a preeminent Scottish philosopher and economist renowned for his groundbreaking works that profoundly influenced classical economics and modern economic thought. Born on June 16, 1723, in Kirkcaldy, Scotland, Smith was a key figure of the Scottish Enlightenment. He is most celebrated for his treatise 'An Inquiry into the Nature and Causes of the Wealth of Nations' (1776), commonly referred to as 'The Wealth of Nations,' which is considered the first modern work of economics. In this seminal masterpiece, Smith delineated the principles of free market economies, division of labor, and the function of self-interest in economic exchanges. His other significant contribution is 'The Theory of Moral Sentiments' (1759), where Smith explored the nature of ethical judgments and the origin of human sympathy, offering insight into the moral thinking that precedes his economic theories. Smith's contributions to economic thought, particularly his beliefs on the invisible hand of the marketplace, individual liberty, and competition, established the foundational concepts of capitalism. His literary style, marked by thorough analysis and lucid prose, has allowed his theories to transcend the centuries and remain influential. Smith's insights into moral philosophy and economics have laid a blueprint for understanding the dynamics of wealth creation and ethical considerations within society, earning him the reputation as the father of modern economics (Schumacher, E.F. 1973. 'Small is Beautiful: Economics as if People Mattered').