Adam Smith's Wealth of Nations

1. Capitalism- an economic system based on private ownership on the means of production and the distribution of goods.
Mercantilism- a system based on the idea that a strong country is a country that holds a great deal of wealth with the intervention of the government.
2. The Wealth of Nations was published in 1776.
3. This changed the role of the government in business by stating that the govenment shouldn't interfere in business because business could benefit being on its own. It would be guided by an "invisible hand."
4. By the "invisible hand," Adam Smith meant that the people who seek wealth following their self-interest could help the economy naturally.