Scottish political economist and philosopher Adam Smith (1723–1790) is considered the father of modern economics. His influential book, The Wealth of Nations, is the first great work in political economy. In it, Smith argues against regulations on commerce and calls for a limited role of the government. The market economy is to be kept open and free if nations are to prosper, and the government’s core functions must be to maintain law and order, defence, build infrastructure, and promote education. Smith is critical of government control, but not an advocate of laissez-faire. He believes that the market economy can function only when rules are adhered to. Hence the government’s role in maintaining the rule of law is critical.
The Wealth Of Nations, written before the Industrial Revolution transformed the world, resonates with readers in modern times and offers valuable lessons in solving the economic conundrums of the day.