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Adam Smith

Before Adam Smith, the dominant economic theory of the time was mercantilsim.  Basically this was a theory of making the country rich by maximising exports and minimising imports to keep wealth in a country.  Wealth tended to be measured in gold.

Adam being observant, said that this was clearly nonsense wealth is not just gold, it is all the resources of a country like houses, land, farm instruments etc.  


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