Essay Database

Adam Smith is often accused of propounding an economic theory based solely on self-interest and individual welfare, however Smith's own writings indicate that this is not the case. Smith sees that his ideas surrounding the division of labor will not only benefit the individuals in control of production, but society as a whole. In Book Three of The Wealth of Nations Smith writes: "The gains of both are mutual and reciprocal, and the division of …

…consumer goods were produced. This would allow Frederick to participate in international warfare without concern as to where the money to pay the soldiers would come from. Smith's ideas would allow enlightened monarchs to guide the state to prosperity without sacrificing the needs of the people. Smith provides a capitalistic "Utopia" if which natural economic laws, such as supply and demand, govern an economy which benefits all actors from the lowliest worker to the monarch.