Adam Smith was born in the small town of Kirkaldy, from Edinburgh, Scotland. His father died six months before his birth and he was raised by his mother Margaret alone. Smith graduated from Glaslow University with an MA. In 1763, during a three year tour of Europe as a travelling tutor he worked on what was to become his massively influential masterpiece An Inquiry into the Nature and Causes of the Wealth of Nations. In 1776, he published this book and it became quickly widely known in Europe, France, Germany, etc. (Adam Smith Life Who Is Adam Smith and Adam Smith 1723-1790 An Outline Biography). His views and theories in this work were the diametrical opposite of the ongoing theories and practices of mercantilism. (Adam Smith The Wealth Of Nations Summary). Before we go deep into the theories of this book, let’s first discuss what mercantilism is and how the economy of Britain was like before Adam Smith.
Philip Salter is Director of The Entrepreneurs Network . He started his career as Programmes Director at the Adam Smith Institute, running the Institute’s events, student activities and researching and representing the Institute on education policy in the media. After three years with the Adam Smith Institute he moved into journalism, becoming Business Features Editor of City ., after which he was Editor across EMEA for one of world’s largest insurance brokers. While at City . Philip wrote a weekly column on entrepreneurship and interviewed some of Britain’s leading entrepreneurs. He now writes a regular column for Forbes .
The economic ideas of the classical liberal economists are the basis for the free-market economy of most democratic, Western nations today. Businesses continually aim to produce goods or offer services to satisfy the needs and interests of consumers. In this free-market economy, advertising and marketing have come to play a central role in attempting to persuade consumers to exercise their freedom by purchasing certain goods. Government regulation of business is mainly concerned with insuring that the "invisible hand" is allowed to keep operating in the economy; by preventing monopolies from controlling certain markets, for instance. Leaders of corporations and other businesses in democratic countries take as articles of faith the principles of laissez-faire and the invisible hand treated extensively by Smith and the other classical economists.