What is the historical and economic significance of Adam Smith's "The Wealth of Nations"?

Question

I mean, I obviously know it's a very important work, but how is it regarded today in modern political economy? What are the ways people generally interpret its applicability and validity, especially in modern times?

I'm reading it right now and though I'm only on chapter 3 I really like it so far. I tried reading Das Kapital but couldn't understand it well enough to truly grasp it; I can understand The Wealth of Nations though.

Answer 1

He was simply the first person to articulate in a major treatise how rational self-interest and competition, operating in a social framework depending on adherence to moral obligations, can lead to economic prosperity and well-being. Here we are 230 years later and most of the world has finally gotten around to acknowledging his insights.

There is a reason you can't understand Marx. Let's be charitable and say that he just didn't have the same insight into human behavior that Smith did.

Answer 2

Yeah it's applicable but to say the least there have been some big advances in economic study since then. e.g. rational self interest doesn't always produce the best outcome for everyone involved.

watched the movie "a beautiful mind"? :)