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  • Essay / Adam Smith: The Father of Modern Economics - 1645

    He added labor and capital to the physiocratic idea of ​​land as factors of production and major contributors to a nation's wealth. The laissez-faire philosophy adopted by Smith was somewhat radical as a political and economic doctrine. The idea that the individual, pursuing the ends he desires, would thereby achieve the best results for society as a whole, was new. According to Smith and other proponents of this theory, government may have played a vital role in enforcing laws and contracts, but it should otherwise be left to the "invisible hand" to regulate the market. (Encyclopedia Britanica,