Adam Smith

Father of modern economics who revolutionized understanding of free markets

Adam Smith (1723–1790) transformed economic thought through his groundbreaking works 'The Wealth of Nations' and 'The Theory of Moral Sentiments.' His concept of the 'invisible hand' described how self-interested individuals unintentionally benefit society through market mechanisms—a cornerstone of classical economics.

Smith challenged mercantilist policies by advocating free trade and division of labor. As documented by the Economics Library, his analysis of pin manufacturing productivity became the first detailed case study in industrial efficiency. His theories laid foundation for GDP measurement and modern capitalism.

Beyond economics, Smith's moral philosophy explored sympathy as social glue. The National Library of Scotland highlights how his interdisciplinary approach connected ethics to market behavior. Modern behavioral economists like Daniel Kahneman acknowledge Smith's anticipation of cognitive biases in 'Moral Sentiments.'

Smith's critique of monopolies and emphasis on education's economic value remain relevant. His work influenced global institutions from the Federal Reserve to the World Trade Organization.