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Adam Smith, the Scottish
professor of moral philosophy, was thrilled by his recognition of order in the
economic system. His book, The Wealth of Nations (1776), is the germinal book in
the field of economics which earned him the title, the father of
economics.
In Smith’s view, a nation’s wealth was dependent upon
production, not agriculture alone. How much it produced, he believed, depended
upon how well it combined labour and the other factors of production. The more
efficient the combination, the greater the output, and the greater the nation’s
wealth.
The essence of Smith’s economic philosophy was his
belief that an economy would work best if left to function on its own without
government regulation. In those circumstances, self-interest would lead business
firms to produce only those products that consumers wanted, and to produce them
at the lowest possible cost. They would do this, not as a means o
A. Self-interest is irrelevant to economic growth.
B. People are generally not interested in the public interest.
C. Government shouldn’t intervene in economy.
D. Economic forces should be regulated to promote public interest.
