Adam Smith is also known as one of the fathers of economics. He is best known for his profound ideas and theories on capitalism presented in his book The Wealth of Nations. In The Wealth of Nations, the ideal capitalist government and society is based on the prudence of man and these assumptions and descriptions of the prudent man are found throughout The Wealth of Nations. Smith is considered by many to be the first free market capitalist. In many ways, his philosophies and theories helped shape our economy into what it is today. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Smith introduced us to the invisible hand theory which emphasized a free economy, uninfluenced by government intervention. The invisible hand theory asserted that ultimately, when people were able to pursue their best interests, that is, they were able to pursue work that made them happy and that allowed them to obtain the highest salary for themselves, or when entrepreneurs were able to provide goods, the economy would prosper on its own. Smith argued that intentional intervention by government regulation, while specifically intended to protect or benefit society as a whole, is generally less effective in practice in achieving this than in contrast to a market economy operating freely. In many cases, this harms the population as a whole by denying them the benefits of a burden-free market. By keeping the government out of the economy, it forces people to work and earn more money for themselves. When the government intervenes, people have less incentive to work because it won't be as much as if they worked alone, Adam Smith's ideas are very relevant today. However, with recent events in today's economy, it is evident that some of the practices that previously worked require serious revision to work in today's world. There was a market crisis in early 2008, mainly due to the way the markets were managed and the lack of transparency. Smith's theories held that there was no need to involve the government, but it is clear that lack of government involvement in this matter was simply not an option and would have led to a situation yet more chaotic. Smith's theories provide an excellent foundation and much of the way we live today is based on these theories. This can be seen in our ever-growing society, in the many professions practiced and in the number of new businesses created. That said, while Smith's theories are still relevant today, as times and society change, the way markets are managed will need to improve. This will likely mean greater government involvement at multiple levels to ensure and promote transparency. As the world continues to evolve and new challenges are faced, it will certainly be necessary to apply a new way of thinking about Smith's ideas. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom EssayIn conclusion, Smith's ideas were and still are very influential to our society and the way free markets work. Since then, Adam Smith's ideas and theories have outlived those of any other economist. The question of knowing..