Adam Smith (1723-1790), a philosopher and Scotsman is considered the founder of modern economic theory. Smith had infinite faith in humanity; he believed that people would act in their own self-interest and produce the goods and services required by society as a whole. Somewhat of a poet, Smith contended that an invisible hand was the mechanism behind self-regulation. His magnum opus, “The Wealth of Nations,” was published in the year of our independence, 1776. Smith felt that a free market economy could run on its own steam on auto pilot. Smith’s key concept supported a laissez-faire attitude (the French term literally means “let go,” as in leave it be) by the powers that be, the government, though Smith never actually used that term. In essence he felt that the markets would take care of themselves, and he believed in harmony and growth. He was an outspoken opponent of government intervention, product regulation, trade restrictions, and labor laws. The metaphor of the invisible hand, also known as the invisible hand of the market, is a fascinating concept which Smith perceived of as the self-regulating nature of the marketplace which he discussed in his “Theory of Moral Sentiments.” Smith’s invisible hand was the simultaneous occurrence of the forces of self-interest, competition, and supply and demand which he felt would be inherently capable of allocating resources in society. Not to worry.