Adam Smith’s Capitalism

Capitalism is defined by its classical economists in the intellectual heritage of Adam Smith. For Adam Smith, the individual agents of production and trade are organized by the invisible hand of the market. Goods and services are distributed according to supply and demand, and the market distributes its resources at the highest possible benefit and lowest possible cost. This leads to specialization and ultimately efficiency, which functions as the ultimate end of capitalism. The essential moral logic of capitalism is that market efficiency is an effective proxy and metric for the platonic Good.