Which economist's ideas were influential to the development of modern capitalism?

Study for the ABCTE Elementary Education Exam. Prepare with flashcards, multiple choice questions, hints, and detailed explanations. Get ready to excel in your exam!

The ideas of Adam Smith are central to the development of modern capitalism, primarily through his seminal work, "The Wealth of Nations." Published in 1776, Smith introduced key concepts such as the "invisible hand" of the market, which suggests that individuals pursuing their own self-interests inadvertently contribute to the overall economic well-being of society. He advocated for free markets and competition, arguing that minimal government intervention allows for the most efficient allocation of resources. Smith's emphasis on the division of labor, productivity, and market dynamics laid the foundational principles for capitalist economic theory and practices that shape modern economies today. His insights continue to influence economic thought, public policy, and business practices, making him a pivotal figure in the history of economic theory.

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