Question

How did Adam Smith believe individuals would help their home countries economies without government regulation

Answer 1

He believed they would prefer domestic industry to foreign industry.

Answer 2

He thought the economy would do better by finding efficiency and wealth through the "Invisible Hand" of the market. He felt that government intervention weakened the economy. He also thought that the government would set up a system where businesses would start to band together to try to extract favors from the government, thus, the businesses would work together and not compete, which would make their product prices raise, and their product value and quality fall.