Spotlight: Adam Smith was a laissez-faire economist who believed in supply and demand, and that if you leave things alone, the market will run itself. His philosophy, spelled out in his Wealth of Nations, was widely popular until the Great Depression. Then, John Maynard Keynes, in his book The General Theory of Employment, Interest and Money, proposed a broader view — macroeconomics — showing the effect that markets, foreign trade and private and government spending have on the economy. His theory became known as Keynesian economics. Both economists were born on this date — Smith in 1723, and Keynes in 1883.

Quote: "Successful investing is anticipating the anticipations of others." — John Maynard Keynes

Question of the Day: What is the historical significance of 'The Wealth of Nations' by Adam Smith?
This book by the Scottish philosopher, Adam Smith (1723-90), appeared in 1776 and is the great classic work of laissez-faire economics (capitalism). It also played a key role in establishing economics as an area of study in its own right.

It was the first major work in the science of economics. It explained how a free market, capitalist economy works and every economic treatise since then has been built on and influenced by it. More

Word of the day: compromise
noun A settlement of differences through mutual concession: accommodation, arrangement, give-and-take, medium, settlement. Law composition. See agree/disagree.

verb 1. To make a concession: concede. Idioms: give and take, go fifty-fifty, meet someone halfway. See agree/disagree.
2. To expose to possible loss or damage: adventure, hazard, risk, venture. See safety/danger. (© Houghton Mifflin Company)

Today's History:

Robert Kennedy

• bananas: became popular at the Philadelphia Centennial Exposition; they were served wrapped in foil (1876)
• Six-Day War: began; Israel was victorious against Egypt, Syria and Jordan; Jerusalem was reunited (1967)
• Robert Kennedy: US presidential candidate was shot by Sirhan Sirhan; he died the next day (1968)
• AIDS: first cases were reported by the US Centers for Disease Control and Prevention (1981)

Today's Birthdays:

Kenny G.

• John Couch Adams (1819-1892): mathematician and astronomer who predicted the existence of the planet Neptune
• Federico García Lorca (1898-1936): passionate Spanish poet, playwright and musician
• Bill Moyers (74): reporter and commentator who was LBJ's press secretary
• Ken Follett (59): author of Eye of the Needle; also born on this date was writer Margaret Drabble (69)
• Kenny G. (52): smooth jazz saxophonist, Duotones
• Liza Weil (31): Paris Geller on Gilmore Girls; actors Bill Hayes (83), Mark Wahlberg (37) and Navi Rawat (31) were also born on this date