Volume 1 of Adam Smith's An Inquiry into the Nature and Causes of the Wealth of Nations, originally published in 1776, delves into the fundamental principles that drive a nation's prosperity. Smith argues that the division of labor significantly increases productivity, using the famous example of a pin factory. He posits that individuals acting in their self-interest, guided by an "invisible hand," unintentionally benefit society through the mechanisms of free markets and competition.
The book explores the origin and use of money, the concept of value, and the factors that determine wages, profit, and rent. Smith critiques mercantilist policies, advocating for free trade and limited government intervention in the economy. He emphasizes the importance of capital accumulation and its role in fostering economic growth. Ultimately, Volume 1 lays the groundwork for Smith's broader argument that a free-market system, characterized by individual liberty and competition, is the most effective way to generate wealth and improve the overall well-being of a nation.
 
Part of the Everyman's Library Series edited by Ernest Rhys