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Law, Ethics, and Corporate Governance – LEG 500 Section 001003
Adam Smith’s Wealth of Nations Reviewed
Strayer University Alexandria Campus
Touraj Behmand SID:1121701137
Professor Glen A. Trimper
March 02, 2011

Table of Contents

Abstract 3 Book I: Of the division of labour 4 Book I: Of the origin and use of money 5 Book I: Of the natural and market price of commodities 6 Book II: Of the Division of stock 7 Bibliography 10

Abstract
Adam Smith was born in Kirkcaldy in 1723. He entered Glasgow University at the early age of fourteen. He studied logic, metaphysics, math and later Newtonian physics and moral philosophy under some of the leading scholars of his day. He is famous for his theory that nations achieve their wealth and function best where individuals are free to use their skills and capital in their own self-interest, at their own good judgment and risk. But isn’t that the same as entrepreneurship? In today’s capitalism society each individual is seeking prosperity by risking his or her own capital to gain self-interest. The availability of such option for individuals is what Smith calls freedom. Is that why Smith is also known as ‘the father of capitalism’? Smith taught that prices and wages will automatically reach optimal levels when such freedom is permitted. For instance, jobs that require special training will result in fewer people making that investment and, therefore, ultimate higher wages. This explains why engineers make more money than construction workers.
It is not feasible to summarize the “Wealth of Nations” into words, however the concept of what the book is depicting, is the great work of political economy. Political economy which would illustrate the taxonomy of wealth, the ideology of capitalism and the effects of such ideology in prosperity of a Nation. “It has already been explained that the triumph of free

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