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An Inquiry into the Nature and Causes of the Wealth of Nations : Volume II: v. 2 (Glasgow Edition of the Works and Correspondence of Adam Smith) Paperback – 1 Jan 1994

4.5 out of 5 stars 200 customer reviews

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  • An Inquiry into the Nature and Causes of the Wealth of Nations : Volume II: v. 2 (Glasgow Edition of the Works and Correspondence of Adam Smith)
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  • The Theory of Moral Sentiments (Penguin Classics)
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Product details

  • Paperback: 544 pages
  • Publisher: Liberty Fund Inc; Volume 2 ed. edition (1 Jan. 1994)
  • Language: English
  • ISBN-10: 0865970076
  • ISBN-13: 978-0865970076
  • Product Dimensions: 15.9 x 3.8 x 23.5 cm
  • Average Customer Review: 4.5 out of 5 stars 200 customer reviews
  • Amazon Bestsellers Rank: 977,593 in Books (See Top 100 in Books)
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Synopsis

First published in 1776, the year in which the American Revolution officially began, Smith's "Wealth of Nations" sparked a revolution of its own. In it Smith analyzes the major elements of political economy, from market pricing and the division of labour to monetary, tax, trade and other government policies that affect economic behaviour. Throughout he offers seminal arguments for free trade, free markets and limited government. Criticizing mercantilists who sought to use the state to increase their nations' supply of precious metals, Smith points out that a nation's wealth should be measured by the well-being of its people. Prosperity in turn requires voluntary exchange of goods in a peaceful, well-ordered market. How to establish and maintain such markets? For Smith the answer lay in man's social instincts, which government may encourage by upholding social standards of decency, honesty and virtue, but which government undermines when it unduly interferes with the intrinsically private functions of production and exchange.

Social and economic order arise from the natural desires to better one's (and one's family's) lot and to gain the praise and avoid the censure of one's neighbours and business associates. Individuals behave decently and honestly because it gives them a clear conscience as well as the good reputation necessary for public approbation and sustained, profitable business relations.


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