History & Area Studies / Thematic History / Economic History & Industrialization

Adam Smith's Secret: How Paper Money Caused the 1772 Financial Crisis

Adam Smith

What if the father of modern capitalism, Adam Smith, was deeply involved in a major financial meltdown? This video dives into the 1772 crisis, a pivotal moment often overshadowed by later panics. We'll explore how the rapid expansion of paper credit—the "Daedalian wings" of banknotes—led to a spectacular crash. Discover Smith's real-world role during this turmoil, moving beyond his famous 'invisible hand' theory to see his practical engagement with banking, speculation, and economic collapse. Learn the forgotten lessons from one of history's first modern financial crises and how they still echo in today's markets.