Adam Smith Biography
Considered the father of modern economy, Adam Smith was born in Scotland, probably in 1723, having deceased in 1790. His book “The Wealth of Nations”, edited in 1776, was and continues to be a book of reference for all economists. Before this book, in 1759, Adam Smith had already published the book “The Theory of Moral Feelings”, a book which launches the physiologic and psychological grounds about which his masterpiece “The Wealth of Nations” would become later built.
The main principle defended by Adam Smith in his book was of the Free Competition: is the competitive fight between the producers for the defense of their own interests and for the maximization of its own profits which form the development engine of the economies; Adam Smith explains how the competition forces the goods price lower until its “natural” levels, which correspond to its production cost – it’s the “invisible hand” (or market mechanism) which regulates the market without the need of intervention from other external strengths. According to the Free Competitor principle, the State should reduce to the maximum its economy role (“laissez-faire”) and let the market regulate itself.
