Most people think they know the answer. They shout "The Wealth of Nations" and call it a day. But if you actually want to know what book did Adam Smith wrote, you're looking at a much more complex, slightly weird, and deeply philosophical legacy than just a manual for capitalism. Smith wasn't just an economist. He was a moral philosopher who spent a huge chunk of his life obsessed with why humans feel sympathy for one another.
He actually only published two major books during his lifetime.
The first one usually catches people off guard because it has nothing to do with money—at least not directly. It’s called The Theory of Moral Sentiments, published in 1759. The second is the big one, the 1776 powerhouse officially titled An Inquiry into the Nature and Causes of the Wealth of Nations. If you’re trying to understand the modern world, you kinda have to look at both. They're like two sides of the same coin. One looks at how we treat our neighbors; the other looks at how we trade with them.
The Book Everyone Forgets: The Theory of Moral Sentiments
Before he was the "Father of Economics," Adam Smith was a star professor at the University of Glasgow. He was teaching ethics.
In 1759, he dropped The Theory of Moral Sentiments. It’s a deep dive into human psychology. Smith wanted to know how we decide what is "right" and "wrong" without a divine being constantly whispering in our ears. He came up with this idea of the "impartial spectator." Think of it like an imaginary, objective observer in your head that judges your actions.
It’s honestly a bit of a psychological thriller for the 18th century. He argues that humans are naturally empathetic. We feel a "fellow-feeling" when we see someone else in pain. This is crucial because, without this book, The Wealth of Nations looks like a manifesto for greed. But Smith believed that markets only work because humans have a baseline of moral restraint.
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He revised this book six times. He was still tweaking it on his deathbed in 1790. That tells you something. He cared about our moral compass just as much as he cared about the gross domestic product.
What Book Did Adam Smith Wrote That Changed History?
Now we get to the heavy hitter. An Inquiry into the Nature and Causes of the Wealth of Nations.
Released in 1776—yeah, the same year the U.S. Declaration of Independence was signed—this book basically invented the way we think about money today. Before Smith, most countries followed "mercantilism." It was a simple, kinda dumb idea: the country with the most gold wins. Governments hoarded gold and slapped massive taxes on imports.
Smith hated this.
He argued that a nation’s wealth isn’t gold in a vault. It’s the total of its production and commerce. Basically, how much stuff can your people make and trade? He introduced the "division of labor" using a famous example of a pin factory. He noticed that one guy making a pin from start to finish might make one pin a day. But if ten guys split the tasks—one drawing the wire, one straightening it, one sharpening the point—they could make thousands.
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Efficiency. Specialization. Productivity.
The Invisible Hand Myth
You've probably heard the phrase "the invisible hand." Interestingly, Smith only uses that phrase once in The Wealth of Nations. He wasn't saying the market is a literal ghost. He was saying that when individuals pursue their own self-interest (like a baker making bread to make money), they accidentally end up helping society (everyone gets bread).
It wasn't a call for total anarchy. Smith actually advocated for government intervention in things like education and infrastructure. He knew that "unrestrained" markets could get ugly.
The Stuff That Got Burned
Here is a bit of history that most people miss. Adam Smith was a bit of a perfectionist. A major one.
Before he died, he made his friends burn almost all of his unpublished manuscripts. Imagine the loss. We know from student notes that he was working on a massive theory of law and government, often referred to as Lectures on Jurisprudence.
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We also have Essays on Philosophical Subjects, which was published posthumously in 1795. It contains his "History of Astronomy," which is surprisingly readable. But the "big" books—the ones that define his soul—remain the duo of Moral Sentiments and Wealth of Nations.
Why the Order Matters
If you read Wealth of Nations first, you might think Smith was a cold-hearted capitalist. If you read Moral Sentiments first, you realize he was a guy who believed that "man naturally desires, not only to be loved, but to be lovely."
He believed that commerce could be a force for civilization. He thought trade made people more likely to be polite and reliable because you don't cheat someone you want to do business with tomorrow.
Practical Takeaways for the Modern Reader
If you're looking to actually apply Smith’s logic today, don't just read the SparkNotes. The world has changed, but the mechanics of human behavior haven't.
- Understand the Division of Labor: In your own business or career, are you trying to do everything? Smith would tell you to specialize. Find the "pin" you sharpen best and let others handle the wire.
- Balance Self-Interest with Sympathy: Smith’s two books are a balancing act. Success in business (self-interest) requires a reputation for honesty and empathy (moral sentiments).
- Watch for Monopolies: Smith was terrified of "combinations" of merchants. He warned that whenever people of the same trade meet, the conversation usually ends in a conspiracy against the public. Be wary of any market that lacks competition.
- Read the Primary Source: The Wealth of Nations is long. It’s dense. It has a whole section on the price of silver that will put you to sleep. But the first few chapters are absolute gold for understanding how the modern world was built.
To truly understand what book did Adam Smith wrote, you have to look past the 1776 bestseller. You have to see the philosopher who wanted to know why we care about each other. He gave us the tools to build wealth, but he also gave us the warning that wealth without morality is a hollow victory.
Start by reading the first two chapters of The Wealth of Nations to understand the division of labor. Then, find a summary of the "Impartial Spectator" from The Theory of Moral Sentiments. This provides the full picture of the man who shaped the modern world.