Classical Economics: Smith, Ricardo, and Malthus

Adam Smith (1723-1790), a Scottish moral philosopher, published An Inquiry into the Nature and Causes of the Wealth of Nations in 1776, a work widely regarded as the founding text of modern economics. Its central claim is that individuals pursuing their own self-interest within a competitive market are led, in Smith's famous phrase, "as if by an invisible hand" to promote outcomes beneficial to society as a whole, without intending to do so. Smith used the argument to criticize mercantilist restrictions on trade and to advocate for markets governed chiefly by competition, with government limited mainly to defense, justice, and certain public works.