What are the central idea of Smith's text?

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2026-03-29 18:30

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Adam Smith's central idea in "The Wealth of Nations" is that a free market economy, driven by self-interest and competition, leads to economic prosperity and growth. He argues that when individuals pursue their own self-interest, the invisible hand of the market guides resources to their most efficient use, benefiting society as a whole. Smith also emphasizes the importance of division of labor and specialization in increasing productivity and wealth.

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