The Wealth of Nations
by Adam Smith
Key Concepts
Invisible Hand
Individual self-interest, guided by market forces, unintentionally promotes societal well-being.
Division of Labor
Specializing tasks among workers vastly increases productivity and national wealth.
Free Trade
Unrestricted exchange of goods and services between nations benefits all participants.
Laissez-faire
Minimal government intervention allows markets to regulate themselves efficiently.
Self-Interest
The pursuit of individual gain is a powerful engine for economic growth and innovation.
Action Items
Reduce trade barriers to foster economic growth and international cooperation.
Promote specialization within industries for greater efficiency and output.
Limit government's role to essential functions like defense, justice, and public works.
Trust market mechanisms to allocate resources efficiently without excessive state control.
Encourage competition to drive innovation and lower prices for consumers.
Core Thesis
Nations achieve prosperity through free markets, division of labor, and the pursuit of self-interest, rather than through mercantilist controls.
Mindset Shift
Wealth is generated through productive labor and free exchange, not by accumulating gold or through state-directed economic planning.