The Wealth of Nations: Books 1-3 (Penguin Classics)

Books 1-3 don't quite live up to the lofty reputation of this work. The parts dealing with economic theory and philosophy are quite brief and simple and the rest is just a tediously detailed presentation of economic life in 18th century England and its colonies. Because theoretical generalization is lacking, this material really isn't of much interest today, except perhaps for economic historians.

With this landmark treatise on political economy, Adam Smith paved the way for modern capitalism, arguing that a truly free market -- fired by competition yet guided as if by an 'invisible hand' to ensure justice and equality -- was the engine of a fair and productive society. Books I-III of The Wealth of Nations examine the 'division of labour' as the key to economic growth, by ensuring the interdependence of individuals within society. They also cover the origins of money and the importance of wages, profit, rent and stocks. Smith's work laid the foundations of economic theory in general and 'classical' economics in particular, but the real sophistication of his analysis derives from the fact that it also encompasses a combination of ethics, philosophy and history to create a vast panorama of society. This edition contains an analytical introduction offering an in-depth discussion of Smith as an economist and social scientist, as well as a preface, further reading and explanatory notes.

One American Economic Association president referred to Smith simply as "Our Master" in his annual address. His tongue may have been planted in his cheek, but surely it was no jest. ( )