(1723–1790) was a Scottish economist and philosopher, widely known as the “Father of Modern Economics.” He laid the foundation for classical economics and the idea of free-market capitalism.
Why He Is Famous
Author of The [[Wealth of Nations]] (1776) – one of the most important books in economic history.
Introduced the idea of the “Invisible Hand” – that individuals pursuing their own profit can unintentionally benefit society.
Strong supporter of free markets, competition, and limited government control.
- Explained key ideas like:
- Division of labour
- Supply and demand
- Productivity
- Free trade
Adam Smith believed that when people are free to do business and compete, the whole country becomes richer and stronger 😂
Adam Smith is criticized for placing too much trust in the free market and the idea that self-interest always benefits society. Critics argue that in reality, markets often fail, leading to exploitation, monopolies, and economic inequality where wealth is concentrated in a few hands. His limited role for government is also questioned, as modern economies require state intervention for welfare, education, healthcare, and worker protection. Overall, his ideas are seen as idealistic and not fully practical in real-world conditions.