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The Wealth of Nations was a precursor to the modern academic discipline of economics.

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In this and other works, he developed the concept of division of labour, and expounded upon how rational self-interest and competition can lead to economic prosperity. He was a moral philosopher, a pioneer of political economy, and was a key figure during the Scottish Enlightenment era. The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics.

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Smith laid the foundations of classical free market economic theory.