About the author
Scottish moral philosopher and the founding figure of modern political economy (1723–1790). Smith held the chair of moral philosophy at Glasgow before writing An Inquiry into the Nature and Causes of the Wealth of Nations (1776), which argued that the division of labour and the coordinating power of markets — the famous 'invisible hand' — could generate broad prosperity. Often claimed by free-market advocates, Smith was also a sharp critic of merchant monopoly and of the moral costs of commercial society, themes he developed alongside his earlier Theory of Moral Sentiments.
Synopsis
A major work on division of labor, markets, trade, prices, productivity, and political economy.
Core passage idea
Paraphrase · Public domainSmith emphasizes the division of labor as a source of productivity.
This helps users understand capitalism as a system of specialization, exchange, and productivity.
To avoid a bubble
Pair with Marx, Polanyi, or social democratic critiques.
Reading note
Do not reduce Smith to simplistic free-market slogans. He is more nuanced than many modern summaries suggest.
Best paired with
Karl Polanyi, The Great Transformation.