Reply #6: Capitalism also existed before there was a theory to explain it [View All]

[kwassa]

It really goes back probably to the beginning of human societies, and bartering and trade.

The chief original theorist was Adam Smith, with "The Wealth of Nations" in 1776.

The principle you are talking about is Smith's "Invisible Hand" that points to the need and fills it. He also talks of the need for the "public good" which we might now call a market failure, in which there is a need that societies have that will not be filled by market forces alone, and which those societies will need to provide it on a government level, such as various types of infrastructure and services.