WEALTH OF NATIONS

an important work of economic and social theory by Adam Smith , published in 1776. Its full title was Inquiry into the Nature and Causes of the Wealth of Nations . In it he analysed the relationship between work and the production of a nation’s wealth. His conclusion was that the best economic situation results from encouraging free enterprise (= an economic system in which there is open competition in business and trade, and no government control). This idea has had a great influence on economic theories since and it formed the basis of the economic policies of the Conservative government in Britain in the 1980s.