Adam Smith's Wealth of Nations Essay

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Executive Summary The first book, of the five book series, was published in 1776. This was the first inclusive work on the political economy and all of its contributing factors. Smith focuses on the relationship between freedom and order and analyzes economic processes, while tracing the stages in the development of modern economic system. His book explains the origins of money and all stems of monetary value. Smith did not agree with Great Britain’s mercantile system's limitations on free trade; this system controlled the society in which he lived in at the time. Governmental interference posed a problem that seemed to hinder the entrepreneur from entering into self-managed financial agreements with others. Smith believed in, what he termed, “the invisible hand”, or an economic system that can run itself without the help of overseers like government officials. An economic society that runs on an open economy is able to offer more goods to the public that are not otherwise available in a closed economy. An open economy that includes international trade increases the productivity of that nations resources. In this case, greater total output is possible. In the words of Adam Smith: “It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. The taylor does not attempt to make his own shoes, but buys them of the shoemaker. The shoe- maker does not attempt to make his own clothes, but employs a taylor. The farmer attempts to make neither one nor the other, but employs those different artificers… What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom. If a foreign country can supply us with a commodity cheaper than we can make it, better buy it of them with some part of the produce of our own

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