Wealth of Nations

by Adam Smith

It is symbolic that Adam Smiths masterpiece of economic analysis, The Wealth of Nations, was first published in 1776, the same year as the Declaration of Independence.

In his book, Smith fervently extolled the simple yet enlightened notion that individuals are fully capable of setting and regulating prices for their own goods and services. He argued passionately in favor of free trade, yet stood up for the little guy. The Wealth of Nations provided the first--and still the most eloquent--integrated description of the workings of a market economy.

The result of Smiths efforts is a witty, highly readable work of genius filled with prescient theories that form the basis of a thriving capitalist system. This unabridged edition offers the modern reader a fresh look at a timeless and seminal work that revolutionized the way governments and individuals view the creation and dispersion of wealth--and that continues to influence our economy right up to the present day.

by Adam Smith

It is symbolic that Adam Smith's masterpiece of economic analysis, The Wealth of Nations, was first published in 1776, the same year as the Declaration of Independence.

In his book, Smith fervently extolled the simple yet enlightened notion that individuals are fully capable of setting and regulating prices for their own goods and services. He argued passionately in favor of free trade, yet stood up for the little guy. The Wealth of Nations provided the first--and still the most eloquent--integrated description of the workings of a market economy.

The result of Smith's efforts is a witty, highly readable work of genius filled with prescient theories that form the basis of a thriving capitalist system. This unabridged edition offers the modern reader a fresh look at a timeless and seminal work that revolutionized the way governments and individuals view the creation and dispersion of wealth--and that continues to influence our economy right up to the present day.

2. Smith famously writes: “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. We address ourselves, not to their humanity but to their self-love. . . .” What does Smith mean by “self-love” or “self-interest”?

3. As R. H. Campbell and A. S. Skinner write, The Wealth of Nations “was not only an intellectual achievement . . . embracing as it does the explanation of complex social relations on the basis of a few principles, but also a work which provided practical prescriptions for the problems of the day.” Discuss these aspects of Smiths work-analytical and prescriptive or historical; what is their relation? Is the one necessary for an appreciation of the other?

4. In his Introduction to this volume, Robert Reich notes that “The Wealth of Nations is resolutely about human beings-their capacities and incentives to be productive, their overall well-being, and the connection between productivity and well-being.” How does this statement, taken as a point of departure, shed light on Smiths book and its significance?

5. Although he is considered the founder of political economy (or modern economic thought more generally), Adam Smith considered himself a moral philosopher. How does looking at him in this way-as someone fundamentally concerned with questions of ethics-change your understanding or appreciation of his work?

From the Trade Paperback edition.

2. Smith famously writes: “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. We address ourselves, not to their humanity but to their self-love. . . .” What does Smith mean by “self-love” or “self-interest”?

3. As R. H. Campbell and A. S. Skinner write, The Wealth of Nations “was not only an intellectual achievement . . . embracing as it does the explanation of complex social relations on the basis of a few principles, but also a work which provided practical prescriptions for the problems of the day.” Discuss these aspects of Smiths work-analytical and prescriptive or historical; what is their relation? Is the one necessary for an appreciation of the other?

4. In his Introduction to this volume, Robert Reich notes that “The Wealth of Nations is resolutely about human beings-their capacities and incentives to be productive, their overall well-being, and the connection between productivity and well-being.” How does this statement, taken as a point of departure, shed light on Smiths book and its significance?

5. Although he is considered the founder of political economy (or modern economic thought more generally), Adam Smith considered himself a moral philosopher. How does looking at him in this way-as someone fundamentally concerned with questions of ethics-change your understanding or appreciation of his work?

From the Trade Paperback edition.