WORLD 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: -Adam Smith is often identified as the father of modern capitalism.

Detailed explanation-3: -The essential feature of capitalism is the motive to make a profit. As Adam Smith, the 18th century philosopher and father of modern economics, said: “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.”

Detailed explanation-4: -Adam Smith was among the first philosophers of his time to declare that wealth is created through productive labor, and that self-interest motivates people to put their resources to the best use. He argued that profits flowed from capital investments, and that capital gets directed to where the most profit can be made.

Detailed explanation-5: -The basic tenets of capitalism as we know them today were spelled out pretty clearly: supply and demand, division of labor, pursuit of self-interest. And if you strain a little more, you might just remember the man behind the theories: Adam Smith.