Final answer:
Adam Smith is associated with the laissez-faire political economy and is considered the father of political economy, advocating for the system of capitalism with minimal government interference in his groundbreaking work, The Wealth of Nations.
Step-by-step explanation:
Adam Smith is most clearly associated with the laissez-faire political economy, which emphasizes minimal governmental interference in the market.
Smith, a major figure during the Enlightenment, authored The Wealth of Nations and is fondly referred to as the father of political economy.
His ideas laid the groundwork for the economic system of capitalism, an idea that places the means of production in the hands of private individuals and companies, while free markets driven by supply and demand determine the value of goods and services.
Smith challenged the existing mercantilist economy of the time, promoting mutual benefit through free trade and opposing government regulation, which he believed could harm consumer interests by keeping prices high.
He postulated that an economy driven by self-interest and competition would lead to efficiency, reduced prices, and overall prosperity, a notion encapsulated in his theory of the 'invisible hand' guiding the free market.
Although Smith's assumptions have been refined and criticized over time, they still form the foundational principles of modern economic policies, influencing law makers and political leaders in shaping policies aligned with the tenets of a free-market system.
Adam Smith's vast influence on political economy, particularly in advocating for laissez-faire capitalism, confirms his crucial role in the development of our current economic frameworks and ideologies.