Final answer:
Adam Smith viewed humans as self-interested individuals whose actions, guided by an 'invisible hand', inadvertently contribute to societal wealth, laying the foundation for a free-market economy with minimal government intervention.
Step-by-step explanation:
Adam Smith's View of Human Nature in The Wealth of Nations
Adam Smith, often referred to as the Father of Capitalism, provided a distinct view of human nature in his seminal work, The Wealth of Nations. Smith saw humans as essentially self-interested individuals who make rational decisions to maximize personal benefit. However, this self-interest effectively promotes societal wealth through the mechanism he famously called the "invisible hand." By pursuing their own economic interests, individuals inadvertently contribute to the overall economic prosperity of society. This process should occur without significant government intervention, epitomizing the laissez-faire economic principle.
Smith characterized the free market system as self-regulating, where supply and demand are balanced naturally. The invisible hand ensures that the production of goods and services meets the needs of society, as individuals aim to achieve the greatest profits. This free-market approach sees the role of the government as minimal to allow for the unfettered operation of markets.