Adam Smith’s Message

Don Boudreaux cleverly manages to condense the main message of Adam Smith’s The Wealth of Nations to a few sentences:

Smith explained that free trade expands the size of markets, making possible capital investments and greater specialization of workers. These investments, along with the improved skills that highly specialized workers learn, increase output and wages. Confining economic activity to the nation keeps the market artificially small and, thereby, reduces opportunities for output-expanding investment and specialization.

Well done indeed.

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