A foundational work of capitalism that irrevocably shaped the study of economics, An Inquiry into the Nature and Causes of the Wealth of Nations (1776), often shortened to The Wealth of Nations, lays out Scottish economist Adam Smith's analysis on how and why nations build and keep wealth.

It is one of the first works that established a system of political economy, or the study of economic conditions with regard to the surrounding political structure. Within the work, Smith defines many key terms that are still essential to economic understanding to this day, including: division of labor, productivity, free markets, rational self-interest and, most famously, the metaphor of the ?invisible hand? regulating the market through interlocking self-interest. Despite being keenly interested in moral philosophy, Smith was a practical man. A clear example of this practicality is his stance towards slavery and the slave trade, which he denounces not on moral grounds, but because he believes paid labor will always be more efficient than slavery. While the world's understanding of wealth, labor, and equality have changed significantly since its writing, The Wealth of Nations continues to underpi

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n world economics, and its model of competition will most likely guide economic policy for the foreseeable future.