How did Adam Smith's 'The Wealth of Nations' influence the development of capitalist economies?
Understand the Problem
The question is asking about the influence of Adam Smith's 'The Wealth of Nations' on the development of capitalist economies. It presents four possible interpretations of Smith's work and asks you to identify the most accurate one.
Answer
*The Wealth of Nations* advocated for free markets and individual self-interest, which influenced the development of capitalist economies.
Adam Smith's The Wealth of Nations (1776) advocated for free markets with minimal government intervention. Smith believed that individual self-interest and competition would naturally foster economic prosperity. It promoted ideas such as division of labor, productivity, and free trade, laying the intellectual groundwork for the development of capitalist economies.
Answer for screen readers
Adam Smith's The Wealth of Nations (1776) advocated for free markets with minimal government intervention. Smith believed that individual self-interest and competition would naturally foster economic prosperity. It promoted ideas such as division of labor, productivity, and free trade, laying the intellectual groundwork for the development of capitalist economies.
More Information
The Wealth of Nations was published in 1776, which was the beginning of the Industrial Revolution. It is still relevant today and continues to shape global perspectives on commerce.
Tips
A common mistake is to think Smith advocated for complete deregulation; he did believe government had a role to play.
Sources
- The Wealth of Nations | Summary, Themes, Significance, & Facts - britannica.com
- Adam Smith on Capitalism and the Common Good - Econlib - econlib.org
- Adam Smith's Influence: Shaping Economics and Beyond - panmurehouse.org
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