Which economic theory did Adam Smith support?

Adam Smith, often referred to as the father of modern economics, strongly advocated for capitalism and the principles of the free market. He argued that individuals pursuing their own self-interest would lead to economic prosperity and benefit society as a whole, a concept famously illustrated in his seminal work, "The Wealth of Nations." Smith believed that competition and free trade were fundamental to economic growth and that government interference should be minimal, allowing market forces to determine prices and production.

His support for capitalism is crucial in understanding the development of economic theory, as it laid the groundwork for classical economics and influenced later economic thinkers. The idea of the "invisible hand," where individual self-interest inadvertently contributes to societal well-being, reflects the core tenets of capitalism and free market dynamics. This emphasis on individual initiative and minimal government intervention has become central to capitalist economic systems.