AN ANALYSIS OF ADAM SMITH'S: THE WEALTH OF NATION

Adam Smith’s 1776 Inquiry into The Nature and Causes of the Wealth of Nations – more often known simply as The Wealth of Nations – is one of the most important books in modern intellectual history.

Considered one of the fundamental works of classical economics, it is also a prime example of the enduring power of good reasoning, and the ability of reasoning to drive critical thinking forward. Adam Smith was attempting to answer two complex questions: where does a nation’s wealth come from, and what can governments do to increase it most efficiently? At the time, perhaps the most widely accepted theory, mercantilism, argued that a nation’s wealth was literally the amount of gold and silver it held in reserve.