If we consider the most important and impactful document published in 1776, it definitely has to be the Wealth of Nations. Reportedly, the book has one of the most significant global impacts that still change perspectives today. But you would also find many people who are against reading this book because it's old and the philosophies discussed in it do not apply to our era.
So, the question is, should I read Wealth of Nations?
The central concept behind Smith’s The Wealth of Nations is not an era-based book that only talks about history; the underlying concepts aim to fulfill self-interest for the social benefit of people and ask thought-provoking questions that can still make a difference today.
Here’s a complete guide to everything you need to know about the Wealth of Nations.
Why Do You Have to Read “Wealth of Nations?
1. It talks about the birth of the free market
The Wealth of Nations talks about how a free economy has absolutely no flaws and the key to having freedom where everything will have a significant value without being too worked up in the economy’s flaws. It breaks up the inefficiencies in the market to help you grab an idea of how the general economy works and what can be done to combat the rising issues.
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Once you start to read, you will understand countless issues that are still haven’t addressed today and their possible solutions with which we can begin. The book is for all those who liek to get to the fundamentals to solve a problem.
2. Packed with ideas for improvement
The book is still worth it because it is not just a book about ideology, economics, or policies but it is full of ideas and fundamental concepts.
By getting in-depth with the reason behind every motive and economic focusing procedure, you tend to break through the norm and come up with your solutions that no one knew existed before. Every time you pick this book read, you can expect to unveil questions that remain unsolved today and emphasize key aspects we need to focus on regardless of the time.
It works by showing you examples of inefficiencies and ways you can combat them. This means, although the book mainly revolves around economics, if you want to understand economics in modern times, this may not be the right choice for you.
However, if seeking knowledge of how markets work in general and the reasons behind what has led the market to what it is today, you can rest assured to find everything in this particular book.
3. Helps you see beyond your knowledge
As a general rule of thumb, the point of history to help you see the concerts that existed beyond our current system. Flawed or not, that’s a whole nother story. Simply learning about the things that used to exist, you can open up gates to different possibilities and ideas, an amalgam of ancient inventions and modern strategies to bring out the best in the system.
Regardless of how educated or informed you are, your actions are always limited to your current knowledge. In the book, Smith makes it possible for you to learn from the life experience of others. As a result, you will start to question the wrong and figure out solutions in heh most efficient way possible.
4. Talks about the practical government issues
In the book, Smith does an incredible job at bringing up the practical issues of government related to 18th Century Britain. Sure, you won’t be interested in what the government was going back then. However, it will help broaden your mind to unmatched opportunities and ideas that you would have never thought of before.
This is because the way they combat each of the issues helps raise awareness and generate ideas that you can apply to modern-day government problems. The best way to read this packed with knowledge you have no idea about is to read the first part once, keep it for a month or two, and reread it to discover a whole new world with every read.
Another thing covered in the book is how the division of labor can yield unprecedented productivity. He does that by breaking production down into many small tasks and using specialized hands to take care of it. This helps you recognize the unproductive workers and replace them with an efficient staff or labor-saving machinery, which can prove to be a wise decision in the long run.
He also mentions rigorously focusing on improving the domestic business instead of foreign as it will give a better use of security and produce results of greatest value. However, this is only the result of the free market, which Smith refers to as an “invisible hand.”
5. Use the money to build
Many people earn to avail the luxuries of their life; Smith urges you to use the money to help build your bigger. In the book, he mentions various ways to earn income and roll it up and its multiple effects to earn freedom in life.
Is “Wealth of Nations” Easy to Read?
In general, unless you understand economics, Wealth of Nations is difficult to read. This is because that’s Smith’s way of explaining things. However, as mentioned above, you need to take your time to digest each unique concept.
A Wealth of Nations is a five-book series with around 586 pages and a small font, making it harder to read for some people.
However, here’s the thing: you know the book goes beyond our current times; this means you barely get to understand half of the concepts mentioned. To read this book, you need to take your time and reread it several times to understand and implement its strategies into your life truly.
However, if you are an avid economics or history reader, there are chances you will understand everything in just a single read.
Is the Wealth of Nations Still Relevant?
Using the word “relevant” here may not be the best way to explain it. Sure, the book goes in-depth to the 18th-century system and talks about government policies. However, this is not the main idea here.
A wealth of Nations aims to help break down the inefficiencies and find the best possible timeless solutions that can let any entrepreneur make their business more impactful than ever. Therefore, reading this is beneficial for gaining knowledge, but its relevance can still be implemented in various sectors of your life.
Best of all, unlike many other nonfiction books that revolve around the systems of today, this book helps you shift your perspective into a completely different concept and resolve the underlying problems in the most creative way possible.
What is the Main Idea of the Wealth of Nations?
As someone like Adam Smith, he is the champion free market and spent the last years of his life as a Commissioner of customers, which led him to be responsible for imposing tariffs. During this time, he’s been known for burning many clothes that were smuggled into the shop from abroad.
The main concept of the book is all about an invisible hand. The book states that the economy can work well in a free market where nay can work according to their interest.
How?
He explained that the economy could stay competitive if the government fits all the regulations in trading goods every time demand arises. Self-interested traders in the market can deliver the goods at the desired prices since you get to have no tariffs or regulations from the government.
In a free market scenario, you get to have zero restrictions during trading. This means the government won’t interfere in what you do, no tariffs, and you will get to sell goods in the amount you originally intended to. This not just improves demand but has the potential to buy and sell goods without inflation. The customer demand and the seller offer the product all while staying under the same price range.
He suggested that leaving the trading individuals to themselves can let people naturally keep the prices down to stand out against their competitors and inevitably lead to a positive shift in the economy. In these scenarios, traders will charge less, and customers will buy at their desired prices with no hassle whatsoever.
The irony here is this concert can still be a powerful source to yield output that was never mentioned before. When combined with the division of labor, this excellent idea can support multi interdependencies, which can offer stability and efficiency in the market.
Another thing with a mention here is where silver and gold were considered actual wealth; Smith diverted the focus from this concept and mentioned that the nation’s wealth is actually the stream of goods and services that it produces every year.
In modern times, we consider this gross domestic product, and Smith argues that this can be further improved if we set it free.
