Adam Smith
Definition
Adam Smith was an economist and philosopher who wrote what is considered the "bible" of capitalism, "The Wealth Of Nations," where he details the first system of political economy.
Analogy
Imagine Adam Smith as your favorite music artist releasing their debut album (The Wealth of Nations) that changes the music industry (economic theory) forever.
Related terms
Capitalism: An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.
Laissez-faire: A policy or attitude of letting things take their own course, without interfering. In economics, it refers to an environment in which transactions between private parties are free from state intervention.
The Wealth Of Nations: The magnum opus of Adam Smith in which he argues that rational self-interest and competition can lead to economic prosperity.
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