Adam Smith, often referred to as the father of modern economics, was a Scottish philosopher and economist whose ideas have had a lasting impact on the world of commerce. In his seminal work, "The Wealth of Nations," Smith laid out his principles of free-market capitalism and the benefits of self-interest in driving economic growth. His perspective can be summarized as advocating for limited government intervention in the economy, promoting competition, and emphasizing the importance of individual freedoms.
Smith believed that the pursuit of self-interest by individuals would ultimately lead to the improvement of society as a whole. He argued that when individuals are free to pursue their own economic interests, they are more likely to create wealth and drive innovation. In this way, Smith's perspective can be seen as a precursor to the concept of laissez-faire capitalism, where the government's role is limited to enforcing property rights and contracts.
One of the key principles of Smith's philosophy is the idea of the "invisible hand," which refers to the unintended benefits that arise from individuals acting in their own self-interest. Smith believed that when individuals are left to pursue their own economic interests, the market will naturally regulate itself and allocate resources efficiently. This perspective contrasts with the idea of central planning, where the government plays a more active role in directing economic activity.