1. Adam Smith Background Born in Kirkaldy, County Fife, Scotland in 1723
Called the founder of modern economics
Teacher at the University of Glasgow
Lectured on moral philosophy
Wrote “An Inquiry into the Nature and Causes of the Wealth of Nations” in 1776
Died in 1790

2. Adam Smith Beliefs Against Government Interference in the Marketplace
Believed that individuals seeking profit, end of benefiting society as a whole
Criticized government officials who attempted to direct people in what they should produce
Believed no single person could direct resources more efficiently than individuals watching out for themselves

3. The Invisible Hand
“He intends only his own gain, and as in many other cases, 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 the society more effectively than when he really intends to promote it”.
By individuals pursuing their own best interests, they are promoting society more than they would if they had intended to promote society in the first place.
The Invisible Hand describes the self-regulating behavior of the marketplace without the need for government intervention.