The Invisible Hand of the Market: The Theory of Moral Sentiments + The Wealth of Nations (ePub)

Adam Smith (1723-1790) was a Scottish economist, philosopher, and pioneering moral philosopher who laid the foundations for classical free-market economic theory. Smith is best known for his two seminal works, 'The Theory of Moral Sentiments' published in 1759 and 'An Inquiry into the Nature and Causes of the Wealth of Nations' commonly abbreviated as 'The Wealth of Nations,' published in 1776. The former book delved into the nature of morality, exploring the role of sympathy in human relationships and the ethical implications of various actions. It displayed his capacity to eloquently examine the ethical considerations underpinning society and the economy. His latter magnum opus, 'The Wealth of Nations,' revolutionized economics by introducing concepts such as the division of labor, productivity, and free markets. It is within this text that the phrase 'the invisible hand' is often attributed to him, describing the self-regulating behavior of the marketplace as individual pursuits for wealth aggregate to the collective benefit of society. His works, together, offer a comprehensive discourse on economic and social organization, reflecting his profoundly influential Enlightenment-era ideas. Smith's contributions have solidified his place as a canonical figure in the development of modern economic theory and moral philosophy (Smith, A. 'The Theory of Moral Sentiments', 1759; Smith, A. 'An Inquiry into the Nature and Causes of the Wealth of Nations', 1776).