This paper discusses the underlying theory of Adam Smith's book "The Wealth of Nations", explaining that Smith saw labor,
not money, as a nation's greatest asset. The paper further
explains that this view strongly reflected the
economic situation of the time brought about by the Industrial Revolution and then goes on to explain that Smith saw competition as a natural outcome of the specialization bred by the division of labor. Next, the paper explains how Smith's views were later elaborated upon by other economic theorists and how these theorists, as well as Smith, ultimately influenced the political philosophies of capitalism, socialism and even communism.