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An Inquiry into the Nature and Causes of the Wealth of Nations, Volume I
First published in 1776, the year in which the American Revolution officially began, Smith's Wealth of Nations sparked a revolution of its own. In it Smith analyzes the major elements of political economy, from market pricing and the division of labor to monetary, tax, trade, and other government policies that affect economic behavior. Throughout he offers seminal arguments for free trade, free markets, and limited government.
Criticizing mercantilists who sought to use the state to increase their nations' supply of precious metals, Smith points out that a nation's wealth should be measured by the well-being of its people. Prosperity in turn requires voluntary exchange of goods in a peaceful, well-ordered market. How to establish and maintain such markets? For Smith the answer lay in man's social instincts, which government may encourage by upholding social standards of decency, honesty, and virtue, but which government undermines when it unduly interferes with the intrinsically private functions of production and exchange.
Criticizing mercantilists who sought to use the state to increase their nations' supply of precious metals, Smith points out that a nation's wealth should be measured by the well-being of its people. Prosperity in turn requires voluntary exchange of goods in a peaceful, well-ordered market. How to establish and maintain such markets? For Smith the answer lay in man's social instincts, which government may encourage by upholding social standards of decency, honesty, and virtue, but which government undermines when it unduly interferes with the intrinsically private functions of production and exchange.
550 pages, Paperback
First published January 1, 1776
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717 people want to read
About the author
Adam Smith
1,467 books2,309 followersFor other authors of this name, see Adam Smith.
Adam Smith FRSA FRS FRSE was a Scottish philosopher and economist who was a pioneer in thinking on political economy and a key figure during the Scottish Enlightenment. He wrote two classic works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, often abbreviated as The Wealth of Nations , is considered his magnum opus and the first modern work that treats economics as a comprehensive system and as an academic discipline.
Authorities recorded his baptism on 16 June 1723 at Kirkcaldy.
https://en.wikipedia.org/wiki/Adam_Smith
Adam Smith FRSA FRS FRSE was a Scottish philosopher and economist who was a pioneer in thinking on political economy and a key figure during the Scottish Enlightenment. He wrote two classic works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, often abbreviated as The Wealth of Nations , is considered his magnum opus and the first modern work that treats economics as a comprehensive system and as an academic discipline.
Authorities recorded his baptism on 16 June 1723 at Kirkcaldy.
https://en.wikipedia.org/wiki/Adam_Smith
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Displaying 1 - 20 of 20 reviews
July 28, 2023
This is a partial review of Adam Smith’s “An Inquiry into the Nature and Causes of the Wealth of Nations”. It’s about volume #1 of a 1996 Brazilian edition, which divided the work into two volumes, making the cut in the middle of Book Four. My review of the whole book (volumes I and II) is here: https://www.goodreads.com/review/show...
So far, it’s been clear why this classic work is considered the milestone of Economics. Smith seeks to comprise in a single work all the relevant economic phenomena of his time, describing them in detail and extracting fundamental insights, laws and general conclusions of Economics used until today. The result is an enormous work both in importance and in extension.
It is therefore a comprehensive work, though surprisingly easy to read (not necessarily pleasant most of the time). Smith has a long-winded style, as can be expected of any author of that era, and he digs deep into many explanations of issues relevant solely to that time. However, it is worth reading the entire work to follow his rationale, and because general insights and brilliant passages appear here and there abundantly and not very systematically.
The author starts out with magisterial conjectures about productivity and division of labor (the famous example of the pin factory), going through many examples of commercial practices of the time governed by the law of supply and demand, digressions on the value of goods and gold and silver, land use, manufacture, the role of banks, productivity, among others.
It is undeniable that the work leans in the direction of freedom to exercise economic activities in the face of State laws, the importance of competition and the harm provoked by monopolies and collusion between entrepreneurs, and the benefits of foreign trade — concepts which are still quite modern. Smith, however, was a broad thinker and sought to capture the economic phenomena in a complete way — something that most modern economists clearly abandoned when narrowing the object of study with excessively simple theoretical premises, on the one hand, and extremely complex execution via mathematical elaboration, on the other.
Smith analyzes the functioning of economic systems from 100% practical topics, distancing his focus from the individual and his subjectivities, since years earlier he had written the Theory of Moral Sentiments in this regard. The distinctive feature of economic reasoning is there: investigation of causes and effects of broad collective phenomena with economic content and economic side effects of actions or measures originally intended to meet specific objectives. The famous “invisible hand” image he became so famous for plays an important role in this aspect, though it discretely appears only once at the end of the first volume. For Smith, economic agents acting in the markets pursuing solely their own interests are taken as if by an “invisible hand” and end up benefitting the public.
Although Smith does not focus his study on individual subjectivities (which ultimately is the original unit of the economic phenomena), but rather occupies himself in explaining economics as a system, it is interesting to read some passages in which he takes such subjectivities into account, such as the one on excessive work as a cause of occupational diseases. An unsuspecting reader might think this is a modern author discussing the excesses of workload in modern liberal society and the corresponding need to preserve the workers’ health against burnout!
(To be completed upon finishing the reading of volume #2).
So far, it’s been clear why this classic work is considered the milestone of Economics. Smith seeks to comprise in a single work all the relevant economic phenomena of his time, describing them in detail and extracting fundamental insights, laws and general conclusions of Economics used until today. The result is an enormous work both in importance and in extension.
It is therefore a comprehensive work, though surprisingly easy to read (not necessarily pleasant most of the time). Smith has a long-winded style, as can be expected of any author of that era, and he digs deep into many explanations of issues relevant solely to that time. However, it is worth reading the entire work to follow his rationale, and because general insights and brilliant passages appear here and there abundantly and not very systematically.
The author starts out with magisterial conjectures about productivity and division of labor (the famous example of the pin factory), going through many examples of commercial practices of the time governed by the law of supply and demand, digressions on the value of goods and gold and silver, land use, manufacture, the role of banks, productivity, among others.
It is undeniable that the work leans in the direction of freedom to exercise economic activities in the face of State laws, the importance of competition and the harm provoked by monopolies and collusion between entrepreneurs, and the benefits of foreign trade — concepts which are still quite modern. Smith, however, was a broad thinker and sought to capture the economic phenomena in a complete way — something that most modern economists clearly abandoned when narrowing the object of study with excessively simple theoretical premises, on the one hand, and extremely complex execution via mathematical elaboration, on the other.
Smith analyzes the functioning of economic systems from 100% practical topics, distancing his focus from the individual and his subjectivities, since years earlier he had written the Theory of Moral Sentiments in this regard. The distinctive feature of economic reasoning is there: investigation of causes and effects of broad collective phenomena with economic content and economic side effects of actions or measures originally intended to meet specific objectives. The famous “invisible hand” image he became so famous for plays an important role in this aspect, though it discretely appears only once at the end of the first volume. For Smith, economic agents acting in the markets pursuing solely their own interests are taken as if by an “invisible hand” and end up benefitting the public.
Although Smith does not focus his study on individual subjectivities (which ultimately is the original unit of the economic phenomena), but rather occupies himself in explaining economics as a system, it is interesting to read some passages in which he takes such subjectivities into account, such as the one on excessive work as a cause of occupational diseases. An unsuspecting reader might think this is a modern author discussing the excesses of workload in modern liberal society and the corresponding need to preserve the workers’ health against burnout!
(To be completed upon finishing the reading of volume #2).
March 6, 2019
Smith's "unseen hand" was, apparently, mentioned only once in The Wealth of Nations, but the essential notion is implicit throughout the book. We are self-interested beings at our core, Smith argues. In an economic exchange, benefit comes not from benefice - good-hearted concern for others - but, rather, from the desire for mutual gain. Spontaneous order results from each seeking their own value. Self-interest, promoted this way and magnified to a nation-scale, promotes the interest of the whole and, collectively, the wealth of nations.
For Smith, the countervailing theory is the mercantile system that advocated national self-interest in the international trading market. The mercantile approach is to sell more abroad than what is returned in value. The key to national wealth is to promote the country's interest in trading at the expense of other countries. The balance of trade, in other words, is to benefit one country's interest and this, in turn, sets up a win-lose trading arrangement.
Smith's rests his economic theory on his theory of moral sentiments. We are by nature social beings and this carries with it a certain disposition to cooperate for mutual advantage so that everyone's self-interest is satisfied. But Smith makes the mistake of presuming that humans all have the same nature whereas self-interested survival impulses work either by incorporating the interest of the other to protect the good of the other and the nation, or by seeking personal advantage at the expense of other other or the nation.
This "other side" to human nature presents the problem that Smith encounters with a mercantile system. This seamy side to the market place is seen also in two forms of utilitarianism where some forces exhibit mutual benefit (utility) whereas other forms of cooperation are fragile at best, and is expendable when it no longer services self-interest. This more purely-construed form of self interest is also why Smith's view of government breaks down. He wants government to get out of the way so that human nature can blossom, though he most certainly opposes all efforts to capture the government to promote the advantage of one group over another. That is a laudable ideal for sure, but Smith's idealism could use a serious dose of realism about how much self-interest can and does take over the reigns of power and use them to promote self-interest that results in winners and losers.
As a final point, Smith celebrates human reason as responsible for all of the good that comes from his economic theory. Animals, he says, don't exchange bones. Every man he says is a merchant. Yes, true superficially, but the desire for bones, as a metaphor for self-interest, is the same for humans as dogs. We just add self-interested reason on top of that desire. Just as with dogs, it all depends on inner character and temperament. Sometimes, many times, that reason serves a self-interest that comes at the expense of others if that can be done without consequence via dominance, manipulation, and deceit.
This review comes from the audio classic series, Parts I and II. I highly recommend the Audio Classic Series, Giants of Political Thought. These are clear and concise and interesting.
For Smith, the countervailing theory is the mercantile system that advocated national self-interest in the international trading market. The mercantile approach is to sell more abroad than what is returned in value. The key to national wealth is to promote the country's interest in trading at the expense of other countries. The balance of trade, in other words, is to benefit one country's interest and this, in turn, sets up a win-lose trading arrangement.
Smith's rests his economic theory on his theory of moral sentiments. We are by nature social beings and this carries with it a certain disposition to cooperate for mutual advantage so that everyone's self-interest is satisfied. But Smith makes the mistake of presuming that humans all have the same nature whereas self-interested survival impulses work either by incorporating the interest of the other to protect the good of the other and the nation, or by seeking personal advantage at the expense of other other or the nation.
This "other side" to human nature presents the problem that Smith encounters with a mercantile system. This seamy side to the market place is seen also in two forms of utilitarianism where some forces exhibit mutual benefit (utility) whereas other forms of cooperation are fragile at best, and is expendable when it no longer services self-interest. This more purely-construed form of self interest is also why Smith's view of government breaks down. He wants government to get out of the way so that human nature can blossom, though he most certainly opposes all efforts to capture the government to promote the advantage of one group over another. That is a laudable ideal for sure, but Smith's idealism could use a serious dose of realism about how much self-interest can and does take over the reigns of power and use them to promote self-interest that results in winners and losers.
As a final point, Smith celebrates human reason as responsible for all of the good that comes from his economic theory. Animals, he says, don't exchange bones. Every man he says is a merchant. Yes, true superficially, but the desire for bones, as a metaphor for self-interest, is the same for humans as dogs. We just add self-interested reason on top of that desire. Just as with dogs, it all depends on inner character and temperament. Sometimes, many times, that reason serves a self-interest that comes at the expense of others if that can be done without consequence via dominance, manipulation, and deceit.
This review comes from the audio classic series, Parts I and II. I highly recommend the Audio Classic Series, Giants of Political Thought. These are clear and concise and interesting.
December 28, 2025
Smith does a great job laying the groundwork for an entire domain of human intellectual endeavor, but he often writes too much, for too long, with too much detail and too little tact. His ideas are this works greatest strength, but they are trapped between pages and pages of needless details, restatements, and over explanations. I hope volume two will redeem the work.
I believe the field of economics and our understanding of how markets define and improve human society would have benefitted from a more optimal founding father, and a better written founding text.
I believe the field of economics and our understanding of how markets define and improve human society would have benefitted from a more optimal founding father, and a better written founding text.
December 31, 2008
This is the work, published in 1776, that transformed the economy of the Western world from mercantilism to capitalism, setting the stage for the global economy today. Adam Smith, a Scottish economist, purposely coincided the publishing of his book with the founding of the United States of America, which he determined would be the principal laboratory for his grand economic experiment. Smart guy...
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November 7, 2024Sooorrryyyy. Couldn't get through the first few pages even. "Savages" rubbed me the wrong way. There's good be better economic books out there but for now its still on my shelf and maybe I will give another try someday.
August 13, 2022
I should pick up the physical volumes at some point.
I like how Adam Smith approaches the topic. Although the antiquated vocabulary makes some simple phrases harder than expected.
I like how Adam Smith approaches the topic. Although the antiquated vocabulary makes some simple phrases harder than expected.
read-an-excerpt
February 3, 2023Read the first two chapters of Book 1 for HUMS3000
May 23, 2023
şirket kuracaksanız bu kitabı okumadan şirket kurmayın.
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August 23, 20242 vol, I e II.
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November 19, 2024Book 1: Chapters 1-2, 4, 5, 8; Book 3: Chapter 3; Book 4, Chapter 1
November 10, 2017
Read it to vet the deception in rhetoric:-
The Wealth of Nations almost sparked a revolution in its time 1776. Adam Smith is considered the father of modern economics. I read this book for researching economics which started merely as an art, and is now a cryptic science ,the very foundation of "business". Book is artfully written. it is a weaving of words to cast a spell .
This book was supposed to be an intellectual attempt to appeal people's sense of morality , communal harmony etc to get the to move from self sufficiency (of growing their own food) to mass production environments. One of several attempts made by various prominent public figures to re engineer society.
In these these works he seduces the reader by discussing the appropriate roles of government, namely defense, justice, the creation and maintenance of public works that contribute to commerce, education, the maintenance of the “dignity of the sovereign" These executive arms ought to be funded by "fair and clear" taxation.
The Wealth of Nations almost sparked a revolution in its time 1776. Adam Smith is considered the father of modern economics. I read this book for researching economics which started merely as an art, and is now a cryptic science ,the very foundation of "business". Book is artfully written. it is a weaving of words to cast a spell .
This book was supposed to be an intellectual attempt to appeal people's sense of morality , communal harmony etc to get the to move from self sufficiency (of growing their own food) to mass production environments. One of several attempts made by various prominent public figures to re engineer society.
In these these works he seduces the reader by discussing the appropriate roles of government, namely defense, justice, the creation and maintenance of public works that contribute to commerce, education, the maintenance of the “dignity of the sovereign" These executive arms ought to be funded by "fair and clear" taxation.
May 26, 2015
Prior to this study, most Nation's wealth was a crude measure of gold/silver bullion held by the state; Smith, however, described the wealth of a nation as the totality of production by the citizens and industries of the state.
While this publication is essential to the development of neoclassical economics, most of its ardent fans tend to cherry pick the elements that support their particular version of "the way the world should be."
Fortunately, Smith was more complex than most people recognize, especially regarding the decision makers' motivation, i.e., pure profit making must be tempered by moral considerations, a facet usually glossed over by proponents of laissez faire policies. It's a good read, but in an edifying manner; it's not a page turner by modern standards.
While this publication is essential to the development of neoclassical economics, most of its ardent fans tend to cherry pick the elements that support their particular version of "the way the world should be."
Fortunately, Smith was more complex than most people recognize, especially regarding the decision makers' motivation, i.e., pure profit making must be tempered by moral considerations, a facet usually glossed over by proponents of laissez faire policies. It's a good read, but in an edifying manner; it's not a page turner by modern standards.
December 18, 2009
These books need to be read by people concerned about the economic paths society is taken. Smith, when read, is being abused by current economic ideologues, who cite him as a model while ignoring all the issues Smith was strongly against or for that do not suite free-market ideology.
Smith would be appalled at current monetary policy, and believed that unions were the only way that labour had a chance in the labour market.
Smith would be appalled at current monetary policy, and believed that unions were the only way that labour had a chance in the labour market.
April 22, 2014
While both volumes exceed 1,000 pages, certainly making it my most voluminous read prior to attending Cambridge, Adam Smith's ideologies and views shaped by his exploration/analysis/musings on the intersections of human psychology, philosophy, and economics,and in particular his views regarding self-interest vs. selflessness -- in my view -- form the cornerstone of his thought-leadership, and what I could personally relate to the most.
October 27, 2020
The text is undoubtedly the foundation of modern economics. It is insane his detail to the market process and understanding of how trade and specialization creates wealth for nations. This book is not one-sided, though. Smith is incredibly nuanced in his arguments and presents a dialectic of the market process that can offer the reader a lifetime of enjoyment. Highly recommended.
August 7, 2014
This audio CD with its voice characterizations transports you back to the 18th century and analyzes Adam Smith's foundational arguments for a capitalist, free market economy. Much shorter than the lengthy, complex tome it analyzes.
March 20, 2011
A massively relevant book to anyone wondering why things are going the way they are economically...and to think it was written by an Englishman in the 1800's...
May 15, 2018
Good introduction to thinking about The Wealth of Nations. By the way, I love the Baroque keyboarding that separates chapters, very 1980's.
June 22, 2020
Surprisingly easy to read and understand. It’s worth it given it’s huge impact on modern economic theories
October 1, 2020
A dedicated interpretation of a giant in modern exonomics. The explanations narrator privides aided in underatanding the makings of modern economy.
Displaying 1 - 20 of 20 reviews