Definition Of Capitalism By Adam Smith

Adam smith adam smith is considered the first theorist of what we commonly refer to as capitalism.

Definition of capitalism by adam smith. His 1776 work an inquiry into the nature and causes of the wealth of nations theorized that within a given stable system of commerce and evaluation individuals would respond to the incentive of earning more by specializing their production. Capitalism is thus a system of social organization by which private money making the build up of capital of herds of money is its chief end. No adam smith s important and deservedly famous early exploration of the operation of capital at the micro and macroeconomic levels primarily the latter regarding matters such as monetary policy and free trade between nations is a work that is revered based upon passages taken out of context and like many other famous books karl marx das kapital charles darwin s the origin of species and rachel carson s silent spring spring to mind smith s book is adored or perhaps in some cases.