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Adam Smith’s masterpiece, first published in 1776, is the foundation of modern economic thought and remains the single most important account of the rise of, and the principles behind, modern capitalism. Written in clear and incisive prose, The Wealth of Nations articulates the concepts indispensable to an understanding of contemporary society; and Robert Reich’s Introduction both clarifies Smith’s analyses and illuminates his overall relevance to the world in which we live. As Reich writes, “Smith’s mind ranged over issues as fresh and topical today as they were in the late eighteenth century—jobs, wages, politics, government, trade, education, business, and ethics.”

PREFACE

EDITOR'S INTRODUCTION

INTRODUCTION AND PLAN OF THE WORK

BOOK I

Of the Causes of Improvement in the productive Powers of Labour,andof the Order according to which its Produce is naturallydistributedamong the different Ranks of the People

CHAPTER I

Of the Division of Labour

CHAPTER II

Of the Principle which gives Occasion to the Division ofLabour

CHAPTER III

That the Division of Labour is limited by the Extent of theMarket

CHAPTER IV

Of the Origin and Use of Money

CHAPTER V

Of the real and nominal Price of Commodities, or of their PriceinLabour, and their Price in Money

CHAPTER VI

Of the component Parts of the Price of Commodities

Adam Smith was born in a small village in Kirkcaldy, Scotland in 1723. He entered the University of Glasgow at age fourteen, and later attended Balliol College at Oxford. After lecturing for a period, he held several teaching positions at Glasgow University. His greatest achievement was writing The Wealth of Nations (1776), a five-book series that sought to expose the true causes of prosperity, and installed him as the father of contemporary economic thought. He died in Edinburgh on July 19, 1790.

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Adam Smith’s masterpiece, first published in 1776, is the foundation of modern economic thought and remains the single most important account of the rise of, and the principles behind, modern capitalism. Written in clear and incisive prose, The Wealth of Nations articulates the concepts indispensable to an understanding of contemporary society; and Robert Reich’s Introduction both clarifies Smith’s analyses and illuminates his overall relevance to the world in which we live. As Reich writes, “Smith’s mind ranged over issues as fresh and topical today as they were in the late eighteenth century—jobs, wages, politics, government, trade, education, business, and ethics.”