“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” This is a quote from the book Wealth of Nations, written by Adam Smith, which addresses well why and why people work. The butcher, the brewer or the baker does not cut, mix or cook to please the customer or feed the poor, but to earn money and for his own happiness. Adam Smith, who fully understood the concepts of capitalism and free market system, became one of the most respected economists in the world. Smith became famous due to his economic philosophy. Because of his thoughts on economics, he is now well known as the "father of economics". Adam Smith was born in a village called Kirkcaldy in 1723, Scotland. His father was a lawyer who married Margaret Douglas in 1720 and died two months after Smith's birth. When Adam was fourteen, he obtained a scholarship to enter the University of Glasgow, and later attended Balliol College, Oxford. After studying, Adam began lecturing in 1748 at the University of Edinburgh. In 1764, Adam interrupted his teaching at Edinburgh University to tutor the son of a duke whose name was Buccleuch. Then, after earning enough money from tuition, Adam published two books. The first book Adam wrote was “The Theory of Moral Sentiments” in 1759, and the second book was “An Inquiry into the Nature and Cause of the Wealth of Nations,” in 1776. In 1778, Adam was appointed administrator of customs. In this job he had to enforce the laws against smuggling. Adam Smith never married and died at the age of 67, in 1790. The book, The Wealth of Nations, plays an important role in the study of Smith's idea... in the middle of the paper... is that it opens new markets for greater profits and reduce the cost of goods if they were imported. This idea would increase the potential wealth of the nation; however, the idea of ​​mercantilism only supports the immediate wealth of the nation. The fifth book, Of the Revenue of the Sovereign or the Commonwealth, addresses his thoughts on the Sovereign or the Commonwealth. Smith states that there are two important duties for the sovereign. The first is to protect the company from attacks from other countries. The second is to protect people from injustice. Even though Adam Smith lived in a different century than ours, he fully understood how wealth can be accumulated. His concepts of capitalism and free markets still underpin many nations and still bring much wealth to these nations. With all these achievements we can, without a doubt, say that Adam Smith is the father of economics.