Smith argued against government interference like tariffs or subsidies, believing that open competition and the voluntary exchange of goods lead to a self-regulating, thriving economy.
An Inquiry into the Nature and Causes of the Wealth of Nations , published in 1776 by Scottish philosopher , is considered the foundational text of modern economics. It shifted the global understanding of wealth from the hoarding of precious metals (mercantilism) to the total production of goods and services through labor, essentially pioneering the concept of Gross Domestic Product (GDP) . Core Economic Principles The Wealth of Nations - An Inquiry Into the Nat...
Smith opens with the famous example of a pin factory to show that breaking down production into specialized tasks dramatically increases efficiency and total output. Smith argued against government interference like tariffs or