Adam Smith's Economic Genius In The Wealth Of Nations

Adam Smith’s economic genius presented in The Wealth of Nations is stimulating because it proves that the economy is constantly changing, but is founded upon basic principles that consistently remain the same. One theme that is regularly reiterated in Smith’s The Wealth of Nations is that each country’s economy plays an important role in the global economy. For example, the idea of the division of labor and trade specialization suggests that each country should utilize its’ resources and citizens’ expertise in order to maximize productivity and gain through trade with other countries. It does not make sense for a country produce a product more expensively when it can simply trade with another country. In addition, the concepts of the invisible

hand and self-interest are a key theme in Smith’s work. Smith believes that if each individual is focuses on doing what is best for himself, he is being guided by an invisible hand to help the economy, even though that was never his intention in the first place. When people do what is in their own best interest, they help the economy by creating a need to be met by another, for which they in turn can fulfill that person’s need in their own area of expertise.
The economy can be thought of in terms of a sports team. Each player focuses on excelling in a particular position in order to benefit the team, and the team is most productive when each player does his job well. The same goes for the economy today. Many people want to help others and believe the best way to do this is by raising minimum wage, standardizing health care, or increasing welfare accessibility, when in reality, these things will only prevent them from excelling in their position and will therefore hurt the economy. Economically speaking, the best way to help others is to first help yourself.