Originally delivered in the form of lectures at Glasgow, Adam Smith`s The Wealth of Nations Books I-III laid the foundations of economic theory in general and `classical` economics in particular, and this Penguin Classics edition is edited with an introduction and notes by Andrew Skinner. The publication of The Wealth of Nations in 1776 coincided with America`s Declaration of Independence, and 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; but the real sophistication of his analysis derives from the fact...