Adam
Smith

The Vibe Shift (1776)

Before Smith, the world ran on Mercantilism.

• Old Idea: Wealth = How much Gold/Silver the King has in the vault. Governments controlled everything.
• Smith's Pivot: Wealth = The goods and services a nation produces (what we now call GDP).

The Invisible Hand

The paradox: How does a chaotic market create order?

"It is not from the benevolence of the butcher... that we expect our dinner, but from their regard to their own interest."

Translation: By chasing their own profit, people accidentally help society more than if they tried to be helpful.

Min-Maxing Productivity

Smith introduced the Division of Labor using the famous "Pin Factory" example.

• Solo Worker: Makes 1 pin a day (maybe).
• 10 Specialists: One cuts wire, one sharpens, one puts the head on.
• Result: 48,000 pins a day.

This was the blueprint for the Industrial Revolution.

Laissez-Faire
(Let it be)

Smith was the original anti-micromanager.

• Free Markets: Let supply and demand set prices, not the King.
• Free Trade: Stop taxing imports. If France makes cheaper wine, buy it from France.
• Role of Gov: Stick to defense, justice, and public works (roads/schools). Stay out of business.

Why He's the "Father"

He didn't just write a book; he wrote the source code for Capitalism.