The Wealth Of Nations Summary (Adam Smith)

Adam Smith’s “The Wealth of Nations” was released in 1776 and is considered the foundation of modern economics. Smith believed that productivity is the key to a nation’s wealth, and this can be achieved through the division of labor and the proper use of machinery. Money was created to facilitate exchange, and its value is determined by the trust placed in it. The real price of everything is its price in labor, which is made up of wages, profits, and rent. Wages are determined by supply and demand, and factors such as difficulty and responsibility can increase a job’s wage. The book also covers topics such as globalization, free trade, and the purpose of government.