An Inquiry into the Nature and Causes of the Wealth of Nations-1776-audio+ebook-WaRlOrD

One of the book's main themes is the concept of an invisible hand that naturally guides a society through self-interest.

In The Wealth of Nations, Smith writes:

"By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention."

This phrase, often quoted and alluded to, was written in the context of the rise and dominance of eighteenth century chartered corporations such as Muscovy Company and the British East India Company, both controlled by the powers of the state. These early multinational government-controlled corporations were chartered exclusively by seventeenth and eighteenth century monarchs in a manner similar to modern no-bid contracts. These monarchs would also enact laws favorable to the enterprise of these early corporations, but less favorable to the local workforces that they employed. In the American colonies, for instance, colonists were permitted to grow cotton but not to make clothing from it. It had to be shipped to England for manufacture, then purchased back in its finished form. Smith felt that if these laws were removed that it would be advantageous to both the state and the individual, thus "promoting an end which was no part his own."

Where free markets are concerned, Smith felt that if capital was able to flow naturally on its own accord that it would, without the assistance of government, flow to the most productive hands; as the individual simply strives to better his own condition.