Who was Adam Smith? How did he impact modern economics?

Adam Smith (1723-1790) was a Scottish philosopher and economist who is widely regarded as the father of modern economics.

He is best known for his 1776 book “An Inquiry into the Nature and Causes of the Wealth of Nations”, which laid the foundation for modern economic theory.

Smith argued for the division of labour and the concept of the “invisible hand” of the marketplace, which means that the pursuit of self-interest can lead to the greater good in society.

He also introduced the concept of an “economic pie” – the idea that a nation’s wealth can be divided among its citizens.

Smith believed that the best way to increase a nation’s wealth was through free trade and competition.

He was also a proponent of laissez-faire economics, where the government does not interfere in the economy.

He argued that the government should focus on providing basic public goods, such as roads and bridges, to facilitate trade and commerce.

Thank you for reading. Create summary videos with Kimavi.