The Wealth of Nations, easily the best known of Smith s writings, is a mixture of descriptions, historical accounts, and recommendations. The wealth of a nation, Smith insists, is to be gauged by the number and variety of consumable goods it can command. Free trade is essential for the maximum development of wealth for any nation because through such trade a variety of goods become possible.
Smith assumes that if each person pursues his own interest, as in a laissez-faire economy, the general welfare of all will be fostered. He objects to governmental control, although he acknowledges that some restrictions are required. The capitalist invariably produces and sells consumable goods in order to meet the greatest needs of the people. In fulfilling his own interest, the capitalist automatically promotes the general welfare. In the economic sphere, says Smith, the individual acts in terms of his own interest rather than in terms of sympathy. Thus, Smith made no attempt to bring into harmony his economic and moral theories, which he set out in The Wealth of Nations and Theory of Moral Sentiments, respectively.
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