USA HISTORY

Detailed explanation-1: -Adam Smith was an 18th-century Scottish philosopher. He is considered the father of modern economics. Smith is most famous for his 1776 book, “The Wealth of Nations.” Smith’s writings were studied by 20th-century philosophers, writers, and economists.

Detailed explanation-2: -It was published by Adam Smith in 1776, when he was roughly fifty-three years old. Naturally, many American readers of Adam Smith’s work have been struck by the fact that The Wealth of Nations was published the same year as the Declaration of Independence.

Detailed explanation-3: -The book’s broad themes Smith’s radical insight was that a nation’s wealth is really the stream of goods and services that it creates. Today, we would call it gross national product. And the way to maximise it, he argued, was not to restrict the nation’s productive capacity, but to set it free.

Detailed explanation-4: -The Wealth of Nations, published as a five-book series, sought to reveal the nature and cause of a nation’s prosperity. Smith saw the main cause of prosperity as increasing division of labor.

Detailed explanation-5: -Smith’s explanation of economic growth, although not neatly assembled in one part of The Wealth of Nations, is quite clear. The core of it lies in his emphasis on the division of labour (itself an outgrowth of the “natural” propensity to trade) as the source of society’s capacity to increase its productivity.