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It was right after the publication of The Wealth of Nations in 1776 that the study of economics was born. It was Smith who presented economics as a discipline of its own, laying the framework of free market that still holds true today. Smith believed that market prices and quantities should be allowed to change and adjust to their “equilibrium” levels without the government getting involved. Consequently, Smith was opposed to the system of mercantilism where the government exerted a lot of control over the economy by regulating production and trade in order to bring back gold and silver. Smith therefore felt that the wealth of a nation lied in the hands of individual people, and that if the government backed off and allowed individuals to make economic decisions on their own that the nations wealth would increase...
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