.

             One of the changes in economic thinking in the eighteenth century was the thought that mercantilism was inadequate. Mercantilism was an economic policy which prevailed in Europe during the sixteenth to eighteenth centuries. These policies stressed gove.

             mental control over industry and trade in accordance with the theory that national strength is increased by an influence of exports and imports. Mercantilism usually ended up in the abuse of a nation"s colonies (like the American colonies), by not allo.

             ng them to trade with other countries. It also demanded that the colonies give all they had to the mother country. This restricted how people wanted to trade and live their lives. This lead to thoughts of how a political and economic units could work to.

             ther with maximum benefit for both. These thoughts were grouped into a theories of free trade or capitalism. This viewpoint received its most important expression in The Wealth of Nations (1776) by the British economist Adam Smith, who was of course inf.

             enced by his close friend, David Humes.

             David Humes may have influenced Adam Smith in the way of economic thinking, but most of his interest lay in philosophical thought. Hume found law distasteful, and enthusiastically plunged into the study of literature and philosophy. Hume later observed.

             hat his studies were "the ruling passion of my life, and the great source of my enjoyment" (Wolff 181). Due to his passion for thinking, he came to be one of the major intellectual figures of eighteenth century Europe. .

             From 1734 to 1737 Hume occupied himself intensively with the problems of speculative philosophy and during this period wrote his most important philosophical work, A Treatise of Human Nature, which embodies the essence of his thinking. In spite of its .

             portance, this work was ignored by the public. Hume"s later works were written in the lighter essay or dialogue forms that were very popular in his day.