Adam Smith (baptized June 5, 1723 – July 17, 1790) was a Scottish economist and philosopher, widely regarded as the "father of economics" or "father of capitalism". Smith is best known for his two classic works: The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776), often abbreviated as The Wealth of Nations. The latter is considered his magnum opus and a foundational text in modern economics.
Smith's The Wealth of Nations challenged the prevailing mercantilist economic theories of his time, which advocated for accumulating gold and silver as the measure of a country's wealth. Smith instead argued that a nation's wealth should be judged by its total production and commerce, what is known today as the gross domestic product (GDP). He advocated for free trade and limited government intervention in markets, believing that individual self-interest in a free market would lead to societal prosperity, guided by what he termed the "invisible hand". Despite his association with laissez-faire economics, Smith supported state intervention in areas such as education and assistance to those in need.
Beyond economics, Smith made significant contributions to moral philosophy. In The Theory of Moral Sentiments, he explored the role of sympathy and social relationships in shaping human morality. He posited that humans possess a natural sympathy for others, which enables them to moderate their behavior and maintain social harmony. Smith held academic positions at the University of Glasgow, teaching moral philosophy and logic. In his later years, he served as a commissioner of customs in Scotland.