The Wealth of Nations

An Inquiry into the Nature and Causes of the Wealth of Nations, usually referred to by its shortened title The Wealth of Nations, is a book by Scottish economist and philosopher Adam Smith. Published on 9 March 1776, it offers one of the first accounts of what builds nations' wealth. It has become a fundamental work in classical economics, and been described as "the first formulation of a comprehensive system of political economy". Reflecting upon economics at the beginning of the Industrial Revolution, Smith introduced key concepts such as the division of labour, productivity, free markets and the role prices play in resource allocation.

The book fundamentally shaped the field of economics and provided a theoretical foundation for free market capitalism and economic policies that prevailed in the 19th century. A product of the Scottish Enlightenment and the dawn of the Industrial Revolution, the treatise offered a critical examination of the mercantilist policies of the day and advocated the implementation of free trade and effective tax policies to drive economic progress. It represented a clear paradigm shift from previous economic thought by proposing that self-interest and the forces of supply and demand, rather than regulation, should determine economic activity.