In short, the mercantilists were preoccupied with the transfer of wealth, whether by export surpluses, imperialism, or slavery— all of which benefit some at the expense of others. Adam Smith was concerned with the creation of wealth, which is not a zero-sum process. Smith rejected government intervention in the economy to help merchants— the source of the name “mercantilism”— and instead advocated free markets along the lines of the French economists, the Physiocrats, who had coined the term laissez faire. ... The most fundamental difference between Adam Smith and the mercantilists was that Smith did not regard gold as being wealth. The very title of his book— The Wealth of Nations— raised the fundamental question of what wealth consisted of. Smith argued that wealth consisted of the goods and services which determined the standard of living of the people— the whole people, who to Smith constituted the nation. Smith rejected both imperialism and slavery— on economic grounds as well as moral grounds, ... Although Adam Smith is today often regarded as a “conservative” figure, he in fact attacked some of the dominant ideas and interests of his own times. Moreover, the idea of a spontaneously self-equilibrating system— the market economy— first developed by the Physiocrats and later made part of the tradition of classical economics by Adam Smith, represented a radically new departure, not only in analysis of social causation but also in seeing a reduced role for political, intellectual, or other elites as guides or controllers of the masses.

What It Means

This is a placeholder explanation generated by the low-overhead model. It interprets "In short, the mercantilists were preoccupied with the transfer of wealth, whether by export surpluses, imperialism, or slavery— all of which benefit some at the expense of others. Adam Smith was concerned with the creation of wealth, which is not a zero-sum process. Smith rejected government intervention in the economy to help merchants— the source of the name “mercantilism”— and instead advocated free markets along the lines of the French economists, the Physiocrats, who had coined the term laissez faire. ... The most fundamental difference between Adam Smith and the mercantilists was that Smith did not regard gold as being wealth. The very title of his book— The Wealth of Nations— raised the fundamental question of what wealth consisted of. Smith argued that wealth consisted of the goods and services which determined the standard of living of the people— the whole people, who to Smith constituted the nation. Smith rejected both imperialism and slavery— on economic grounds as well as moral grounds, ... Although Adam Smith is today often regarded as a “conservative” figure, he in fact attacked some of the dominant ideas and interests of his own times. Moreover, the idea of a spontaneously self-equilibrating system— the market economy— first developed by the Physiocrats and later made part of the tradition of classical economics by Adam Smith, represented a radically new departure, not only in analysis of social causation but also in seeing a reduced role for political, intellectual, or other elites as guides or controllers of the masses." in the context of "Thomas Sowell, Basic Economics, 4th ed. (2010), Ch. 25. The History of Economics." to mean that wisdom is timeless.