Exit study
Tutor
Step 39 of 103

Adam Smith and laissez-faire

Adam Smith's The Wealth of Nations (1776) provided the theoretical foundation for industrial capitalism. Smith argued that individuals pursuing their own self-interest in competitive markets would, as if guided by an "invisible hand," produce the greatest collective wealth. Government should leave the economy alone (laissez-faire, French for "let do").

Sign in to generate flashcards from this section.