What economic system did Adam Smith advocate for?

Adam Smith, a prominent economist of the 18th century, is widely regarded as the father of modern capitalism due to his advocacy for a system characterized by private ownership and free markets. His seminal work, "The Wealth of Nations," outlines his belief that individuals pursuing their own self-interests in a competitive marketplace lead to economic prosperity and innovation.

In a capitalist system, the means of production and distribution are privately owned and operated for profit, and prices are determined by supply and demand. Smith argued that such a system promotes efficiency and allows for greater economic freedom, enabling individuals to engage in trade and contribute to overall wealth creation in society.

Understanding the concept of capitalism is essential, as it contrasts sharply with the other economic systems listed. Communism advocates for collective ownership and the absence of class structures, feudalism is based on a hierarchical system of land ownership and obligations, and socialism emphasizes state or collective ownership, which is contrary to Smith's ideals of free enterprise and minimal government intervention in economic affairs. Thus, recognizing Smith's strong advocacy for capitalism helps clarify his impact on economic theory and practice.