Adam Smith Scottish economist, who used reason to analyze economic systems.

Adam Smith continued: Challenged Mercantilism Capitalism an economic system based on the private ownership of the means of production and distribution and (land,factories, mines, railroads) and their operation for profit, under competitive conditions. Strong believer in laissez-faire (“leave alone”) economics or no government regulation. Believed the economy would be stronger if the market forces of supply and demand were allowed to work freely

Adam Smith Wrote The Wealth of Nations Promoted free markets and trade Economic choice and freedom Capitalism driven by “The Invisible Hand” of Self-Interest

“THE INVISIBLE HAND” OF SELF-INTEREST "It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own self-interest... [Every individual] intends only his own security, only his own gain. And he is in this led by an invisible hand to promote an end which was no part of his intention. By pursuing his own interest, he frequently promotes that of society more effectually than when he really intends to promote it."

“THE INVISIBLE HAND” OF SELF-INTEREST In other words, the "invisible hand" represents all the social good incidentally caused by individuals pursuing their own self-interest. The social benefits of the invisible hand are clearly seen in many cases. A businessman who wants to become a millionaire must first come up with a product that is beneficial, pleasing and desired by thousands of customers. By pursuing his own greed, the millionaire also benefits society.

CARTOON THE INVISIBLE HAND PRINCIPLE