1. ADAM SMITH

2. Adam Smith
Scotttish Economist
Called “Father of Economics”

3. Wrote Wealth of Nations
Published 1776
Explained how a market economy based on capitalism worked

4. “Invisible Hand” Theory
Competing self-interests benefit the common good
The market basically regulates itself

5. Adam Smith favored Laissez-faire economics
(to let alone)
Government should only be involved to ensure free competition in the marketplace. Otherwise, hands off.
Smith believed that competition in free markets (interaction of supply and demand) would ensure good quality products at fair prices

6. Why is competition beneficial?
Increases quality
2) Increases choices
3) Lowers prices

7. The 1st Scotsman to appear on a Bank of England note
Adam Smith
The 1st Scotsman to appear on a Bank of England note

8. Marker leading to Adam Smith’s grave at Canongate Kirkyard Edinburgh, Scotland

9. "Here are deposited the remains of ADAM SMITH
"Here are deposited the remains of ADAM SMITH. Author of the Theory of Moral Sentiments and Wealth of Nations: He was born 5th June, 1725, and died 17th July, 1790."