Adam Smith believed that it is work, and not legislation, that leads to prosperity; free markets and not state action that improves the lives of peoples and nations. In our time, many intellectuals believe that socialism is both more productive and more humane than the market. They argue that government must protect against systemic inequalities of the market system. This first part of the “Economics and the Pursuit of Happiness” course considers these perspectives with reference to the Public Choice School of economics, and along the way will explore the foundations or prerequisites necessary for a commercial society to flourish.