Adam Smith’s “The Wealth of Nations” Turns 250 + Free Markets Face Off Against Industrial Policy

On the 250th anniversary of Adam Smith’s The Wealth of Nations, this episode revisits a book that laid the foundations of modern economics and then considers the tensions between free markets and industrial policy today. It highlights the ways in which specialization and global trade remain powerful drivers of prosperity, reflecting Smith’s insight that self-interest can benefit society when shaped by competition and institutions, while noting the ongoing relevance of his warnings about moral judgment, the rule of law, and resistance to cronyism.

Hosts:

Sebastian Mallaby, Paul A. Volcker Senior Fellow for International Economics, Council on Foreign Relations (CFR)

Rebecca Patterson, Senior Fellow, Council on Foreign Relations (CFR)

Mentioned on the Episode: 

“Adam Smith is Misinterpreted and His Influence Overstated,” Economist 

Gita Gopinath, “Geopolitics and its Impact on Global Trade and the Dollar,” International Monetary Fund (IMF) 

Caitlin Oprysko, “Trump’s Return Supercharges Lobbying Revenues,” Politico

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The Spillover is a production of the Council on Foreign Relations. The opinions expressed on the show are solely those of the hosts and guests, not of the Council, which takes no institutional positions on matters of policy.