Adam Smith

 

Circa 1723 — July 17, 1790

 

Adam Smith was a Scottish philosopher known as the father of economics. In his classic book, An Inquiry into the Nature and Causes of the Wealth of Nations, Smith laid the foundation for modern economics by examining the global inequality of wealth and the human actions that contribute to the distribution of wealth.

 

Essential Thoughts

 

Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism, but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things.

 

It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantages.

 

The natural effort of every individual to better his own condition ... is so powerful, that it is alone, and without any assistance, not only capable of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions with which the folly of human laws too often encumbers its operations.

 

What improves the circumstances of the greater part can never be regarded as an inconveniency to the whole. No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.

 

It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy ... What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom.

 

— The Wealth of Nations