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 such assumptions and descriptions of the prudent man are seen 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 transform our economy into what it is today. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Smith introduced us to the invisible hand theory which emphasized a free economy, unaffected by government intervention. The invisible hand theory stated that, ultimately, when people are left able to pursue their best interests, meaning they are able to do work that makes them happy and that allows them to get the highest wage for themselves, or when entrepreneurs are able to supply goods, the economy would prosper on its own. Smith argued that the intentional intervention of government regulation, while specifically intended to protect or benefit society as a whole, in practice is usually less effective in achieving that goal than a freely operating market economy. In many cases, it is harmful to people as a whole, denying them the benefits of a burden-free market. By making the government keep its hands off the economy, it forces people to work and earn more for themselves. When the government gets in the way, people have less incentive to work because it won't be as much as they would be if they worked for themselves, Adam Smith's ideas are very relevant today. However, given recent events affecting today's economy, it is obvious that some of the practices that worked previously need a serious overhaul to work in today's world. A market crisis occurred in early 2008, mainly due to the way the markets were run and the lack of transparency. Smith's theories held that there was no need for government involvement, but clearly lack of government involvement in this case was simply not an option and would have led to an even more chaotic situation. Smith's theories were a great foundation, and many of the ways we live today are based on these theories. It is evident in our ever-growing society, in the many professions in which people work and in the number of new businesses created. That said, while Smith's theories are still relevant, as times and society change, the way markets are managed will need to be improved. This will likely mean greater government involvement at many levels to ensure and promote transparency. As the world continues to change and new challenges are faced, there will certainly be a need to apply a new way of thinking to Smith's ideas. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay In conclusion, Smith's ideas were and still are very instrumental to our society and how free markets are run. Since Adam Smith's ideas and theories have outlived those of any other economist. Whether or not the invisible hand exists is often debated. It is, however, difficult to deny that Smith's philosophy helped create the most successful economy in history.