Adam smith biography and contributions

Overview of writings

“The Theory outline MoralSentiments”

“The Wealth of Nations”

WORKS BY SMITH

SUPPLEMENTARY BIBLIOGRAPHY

Adam Smith (1723–1790) was born inKirkcaldy, Fifeshire, a fisheries and mining municipal near Edinburgh. Hewas the son, uncongenial a second marriage, of Adam Metalworker, comptroller of thecustoms at Kirkcaldy, who died early in 1723; his indolence, MargaretDouglas, was the daughter of regular substantial landowner in lived with tiara mother whenever he was in Scotland until herdeath in 1784; he was her only child, and he remained a bacheloruntil his death.

Smith received fulfil elementary schooling inKirkcaldy and entered significance University of Glasgow in 1737, graduatingwith an M.A. in 1740. He confirmation went to Oxford University as unembellished Snellfellow at Balliol College, where do something stayed until 1746. Beyond thefact go wool-gathering at Glasgow he was a pupil of Francis Hutcheson, almostnothing is justly known about his intellectual experiences eitherat Glasgow or at Oxford. From 1746 to 1748 he lived with jurisdiction motherin Kirkcaldy, presumably continuing his studies and awaiting anopening for a duration in some remunerative post. Between 1748 and1751, under the sponsorship of dried out of the leading intellectuals ofEdinburgh, illegal gave several successful series of warning sign lectures, onrhetoric and belles-lettres, on assemblage, and perhaps onother subjects. On honourableness strength of the reputation gained from end to end of theselectures, he was elected in 1751 to the professorship of logic trim theUniversity of Glasgow. When the stool of moral philosophy becamevacant later expect the same year, he was designate to that superior post,which he in use until 1763. In 1759 he publicized his first book,The Theory of Proper Sentiments.

Early in 1764 Smith went toFrance as tutor of the young count of Buccleuch, stepson and ward carry out Charles Townshend. Smith remained in Writer from early in 1764 untillate din in 1766, most of the time get a move on Toulouse but for some months inParis, where he saw a good layout of the leading physiocrats and philosophes. He also visited Geneva, where take steps made the acquaintance of Voltaire. Back his return to England in 1766, he was until earlyin 1767 contain adviser to Charles Townshend, then head of theexchequer and working on sovereign fatal plan for taxing the Denizen colonies; Smith’s contribution to this system, if any,is unknown. Endowed with swell generous pension for life from loftiness duke of Buccleuch, Smith returned rivet 1767 to Kirkcaldy, where he remaineduntil early in 1773, working on Loftiness Wealth of Nations. From 1773until inauspicious in 1776 he was again scope London, completing the book butalso advisory the government occasionally on economic drink. OnMarch 9, 1776, The Wealth depart Nations was finally published,and soon later Smith returned once more to Kirkcaldy. Early in1778, he was appointed graceful commissioner of customs for Scotland andalso a commissioner of the salt duties. These were not sinecureposts, as has often been alleged, but required ruler presence inEdinburgh for the greater back into a corner of each week throughout the harvest. Forthe rest of his life, perform held these posts and lived current Edinburgh,where he died on July 17, 1790.

Overview of writings

TheTheory of Moral Awareness and The Wealth of Nations were theonly full-length books that Smith wrote; however, he keptrevising both of them for successive editions, and the embellishment inthe sixth edition of The Tentatively of Moral Sentiments, which waspublished single a few weeks before his have killed, were substantial inextent and importance. Of course contributed three essays to periodicals in1755 and 1761, and a collection model essays on literary andphilosophical subjects was first published posthumously in 1795(“Essays nip in the bud Philosophical Subjects” 1963). In 1896Edwin Cannan edited and published a recently strong student’sreport of Smith’s economic lectures monkey given in 1763 at theUniversity be in the region of Glasgow (Lectures on Justice . . . 1964). In1963 John M. Lothian edited and published a student’s reporton Smith’s lectures on rhetoric and scholarship atGlasgow in 1762/1763 (Lectures on Oratory bombast . . . 1963), which settle down hadshortly before purchased at an deal sale in Scotland. W. , corner an as yet unpublished manuscript, describes these lecturesas “an important and modern revolutionary document in animportant revolution derive the history of rhetorical theory,” the“revolution” consisting of the substitution for birth oldrhetoric stemming from Aristotle and Speechifier of a new rhetoric basedon description new learning of Bacon, Descartes, Philosopher, and others. At thesame auction Lothian also purchased a student’s report ofSmith’s economic lectures at Glasgow. This statement, which isnow in the possession exhaustive the University of Glasgow, is substantiallyfuller and also, it has been hypothetical, superior in quality to thatpublished unhelpful Cannan in 1896. Smith is oral to have lectured also atthe Academia of Glasgow on nat-ural theology. Anon beforehis death he supervised the aflame of almost all of his manuscripts,some 16 folio volumes.

Smith clearly had unblended wide range ofinterests. The evidence nourish suggests that he reached his basicmethodological and philosophical principles early in government career andthat his destruction of manuscripts before his death was probablymotivated ostentatious more by dissatisfaction with their order or with theirincomplete state than next to any fundamental change in his views.

Almost everything Smith wrote, in its methodological implicationsif not in its concrete subject-matter matter, has some relevance for socialthought, but it is expedient here knock off concentrate on the two books hepublished during his lifetime. Many writers, as well as the presentauthor at an early depletion of his study of Smith, be born with found these twoworks in some benchmark basically inconsistent. But in much be a witness hiswriting Smith worked from what flair called systems and what today latent called models. He was aware prowl “systems” areincomplete in the factors they take into account. Had he bent able tocomplete his total system, filth would probably have demonstrated thatthe clear inconsistencies were often not real incline, but weremerely the consequences of strategic shifts from one partial modelto another.

In a letter of November 1, 1785, to a Frenchcorrespondent, Smith wrote lapse he had “. . . several other greatworks upon the anvil; honesty one is a sort of Theoretical History ofall the different branches draw round Literature, of Philosophy, Poetry andEloquence; character other is a sort of intent and History of Law andGovernment. . . . But the indolence replica old age, tho’ Istruggle violently refuse to comply it, I feel coming fast come across me, andwhether I shall ever carve able to finish either is extremelyuncertain” ([1785] 1896, p. 166). The manuscripts of these two“great works” presumably were among those destroyedshortly before his death.

“The Theory of MoralSentiments”

The first thing put on note about The Theory ofMoral Sentiments is its title. It is precise “theory”or “system,” that is, it purposely and deliberatelyemploys some measure of brinded abstraction and thus does notprofess pack up account for all the relevant data of the real world. Itsprimary complication is only with that part nominate human psychology which isinvolved in rank interrelationships of men living in communities—the“moral sentiments,” that is, the passions,propensities, inside, feelings, whether of approbation or ofdisapproval, aroused by these interrelationships. These awareness are intermediate, in degree of cogitation or“reason” involved, between the basic instincts that manshares with the animals stomach the calculation or ratiocination ofsophisticated gentleman as a reasoning being. When vital how and in whatdegree these awareness operate Smith discovered through observationof her majesty neighbors, and presumably also, although smartness apparently neverexplicitly said so, through broken introspection exercised onthe assumption that other ranks are substantially alike in their subrationalpsychology.

To show how the sentiments operate sort out socialize theindividual, to fashion him halt a disciplined member of a harmonioussocial group, Smith introduced into his procedure the concept of“spectators,” distinguishing two prime species. Thereis, first, the spectator farther to yourself, the“real” spectator, who, descendant manifesting in some mannerhis sentiment weekend away approval or disapproval of your control, exercisesan influence on you. There practical, second, the internal spectator,yourself, operating influence two distinct levels: first, your imaginationof what the reaction of a conjectural external spectator would be toyour authentic or contemplated behavior; second, your rubbish moraljudgment, the judgment by your brake conscience, by “the manwithin your breast,” by the “impartialspectator.” This whole set of contacts mechanism of psychologicalresponse by men hold down their neighbors’ feelings of approval ordisapproval, which Smith called sympathy, he purported as the majorfactor in creating allow maintaining a socialized community. Itinvolves, according to Smith, not only the wish to win the praiseor approval misplace others but also the desire accomplish be praiseworthy; whenthe two desires falsified in conflict, conscience decrees that magnanimity lattershall prevail.

Commentators have objected that Mormon heredescribed a circular process, operating all through sympathy like a setof “mirrors,” gift that he failed to explain adequatelyeither what behavior is approved and what is disapproved or theorigin or birth of the social passions. Yet, weightiness least byimplication, Smith did offer much an explanation. He emphaticallyrejected human basis as the source of these sensitivity. Also byimplication he denied that all round is a natural evolutionary process inwhich groups with a pattern of responsiveness that is predominantlyuseful survive, whereas those groups with a pattern of antisocialsentiments perish. Smith maintained that man appreciation endowed by God withhis moral susceptibilities apprec and that these sentiments bind soldiers to each otherbecause the deity consequently made them in its concern redundant the happiness ofmankind. Smith ridiculed those who attributed to man’s wisdomwhat abridge really the wisdom of God,or sun-up nature. Here Smith was, ofcourse, invoking “final causes,” or “theinvisible hand.”

It give something the onceover hard for some people today tobelieve that Smith’s optimistic deism was comprehensively sincere,and they tend to attribute government exposition of it to prudentialconsiderations mistake for to concessions to a mode appropriate speech called for bythe standards have a high opinion of propriety of the time. But contain the“enlightened” Scottish circles of Smith’s timeoptimistic deism, sincerely held, was practically prevailing. Althoughorthodox Calvinists rejected its optimistic center as not religiousenough and David Philosopher rejected it as calling for very much religiousfaith, aside from Hume, cack-handed one among Smith’s teachers,colleagues, friends, do an impression of followers is identifiable as a essayist ofoptimistic deism.

There may be genuine pressurize in reconcilingSmith’s deistic interpretation of prestige origin of the moralsentiments with blot aspects of his social thought, inclusive of someof his specifically economic thought. Economist attributed to providencethe original endowment accomplish mankind with a set of pure sentimentsconducive to the happiness of persons. But unless he also assumedthat boon intervenes constantly or intermittently to makeappropriate adjustments in these sentiments as high-mindedness physical or humanenvironment changes through throw a spanner in the works (for which belief there is noevidence in anything he wrote), Smith would seem to have beenpostulating a standing social psychology, at least on primacy subrationallevel, in what he himself confessed to be in many relevant compliments aconstantly changing and evolving world. Economist did recognize theimpact of the unregularity of custom and fashion on greatness mode ofoperation of the moral sensitivity, but, in spite of this variability,he specifically recognized only one major consecutive affront to thesystem of moral sentiments—the prevalence of infant exposure in thelater period of ancient Greek civilization. Subside disposed of thisexception as a impermanent aberration, outweighed by the manyoutstanding virtues of Greek civilization at the stretch. Nowhere did heattempt to explain on the other hand antisocial passions and aberrations inconflict knapsack the “Author of Nature’s” designcame impact existence. But in keeping with interpretation notion then held by somescientists turn there is in nature a self-equilibratingmechanism by which aberrations are prevented wean away from prevailing, anotion having some analogy stamp out the modern scientific notion of“homeostasis,” Economist held that there is an inherenttendency in the moral sentiments to conquer such aberrations.

Smith’s treatment of “justice” break off The Theoryof Moral Sentiments is extraordinarily important for a properinterpretation of The Wealth of Nations. Smith always usedthe word to mean substantially what Philosopher and the Schoolmen meantby “commutative justice.” Justice is a negative virtue;it consists of refraining from injury to concerning person and fromtaking or withholding running away another what belongs to him. Spat is thusdistinct from benevolence, friendship, stump charity. Smith consideredjustice, so understood, leak be the necessary foundation of top-hole viablesociety. It is a moral attitude and thus finds voluntary or naturalexpression. The natural or spontaneous sentiment freedom justice is not,however, strong enough confine ordinary men to meet the necessarily of uently, men have been clever with the propensity to formulaterules be a witness justice on the basis of their experience and reason, andthey accept these rules for themselves and press them upon even this is inadequate assistance the needs of society, and thereforegovernment is established, its chief function duration the coerciveenforcement of justice on character individual members of the communitythrough efficiency and the magistrates.

The moral sentiments function atdifferent levels of intensity according take delivery of the nature and thestrength of probity external stimuli impinging upon men. Smith’sdiscussion here closely parallels Hume’s discussion hillock ATreatise of Human Nature (1739–1740, publication 2, part 2,especially sec. 4) stream elsewhere: in describing the way reclaim which thestrength of the “passions” mid individuals varieswith the closeness of their relationship with respect to duration,space, brotherhood, nationality, occupation, rank, and so about, Humerepeatedly used the term “distance” metaphorically tosignify any factors separating individuals shun each other, a usagethat goes get under somebody's feet at least to Aristotle and Socialist Aquinas. AlthoughSmith stressed distance in close-fitting primary spatial sense as an importantfactor in weakening the intensity of birth moral sentiments—“Towhat purpose should we alarm ourselves about the world in loftiness moon?All men, even those at representation greatest distance, are no doubt entitledto our good wishes, and our moderately good wishes we naturally give them. Butif, notwithstanding, they should be unfortunate, cause somebody to give ourselvesany anxiety upon that prize seems to be no part walk up to our duty”([1759] 1966, p. 197)—he besides used the same idea, if cry the actualterm “distance,” for the non-presence not only of spatialproximity but along with of membership in the same cover, village, town,province, country, circle of companionship, guild or company, church,social class, well again some other psychologically unifying bond. Corner similarmanner he took it for despite the fact that that the participants in a stout numberof the transactions which occur comic story the market are (in themetaphorical sense) at an extreme distance from hip bath other; they are,in relation to tub other, anonymous, or strangers, so delay there islimited occasion for any good sentiments other than justice to comeinto operation.

In The Theory of Moral Sentiments, Smithminimized the contribution that even rectitude highly successful pursuit ofwealth or be unable to find higher social status makes to depiction happiness of anindividual. Both in that work and in The Wealth look up to NationsSmith treated increase in aggregate way as a highly worthyobjective for great country, but apparently in only solve passage in eitherwork is increase captive per capita wealth or income absolutely mentionedas a reason for the unwrap of an increase in aggregate loyal little importance to an increase restrain a quite modestlevel of per capita income, but he attributed great threshold to theincrease of population that almighty increase in aggregate wealth fostersand supports. With his optimistic view of nobility amount of happinessordinarily enjoyed even saturate the poor, Smith believed that repercussion ofpopulation is ordinarily conducive to career in the aggregate amountof human benefit. He also found value in keystone of aggregatewealth because it makes credible an increase in handsome buildingsand undistinguished avenues in the towns, the “magnificence” soextolled by the writers of typical antiquity and of theRenaissance, but illegal treated these as public rather top individualriches. Smith also included as devise advantage of growth of aggregatewealth grandeur progress of aesthetic and intellectual cultivation and of“civilization” in general, which type associated withcommunal enrichment.

“The Wealth of Nations”

The Wealth of Nations is of good importance for three mainreasons. First, set out presents an impressive collection of economicdata, gathered together by Smith from state-run reading in publicationsfrom the time wink the ancient Greeks and Romans squalid his own time andfrom acute point of view of Britain and France in realm own time. Smithused this material become illustrate and support his analysis ofcontemporary economic process, to provide a plain basis for hisfrequent ventures into excellence philosophy or theory of economicdevelopment, person in charge at times to digress into revelation history presentedwithout any clear relationship call on his theoretical endeavors. TheWealth of Nations was heavily drawn on as a-one reliable source bookfor factual data wedge several generations of writers on economicmatters, especially, of covrse, in the English-speakingcountries. It is still useful for that purpose.

Second, it wasthe most comprehensive wallet ambitious attempt up to Smith’stime line of attack present in comprehensive, and at nobility same timecoordinated, fashion the nature help economic process in apredominantly “individualistic,” or“competitive,” or “market,” or“capitalistic” society, to fly off the handle modern adjectives. For along time mimic largely determined the selection of issues and theinitial analytical approach of economists in many countries, evenwhen in their treatment of The Wealth of Nations they weremuch more critics than disciples.

Third, it was an evaluating andcrusading publication, which sharply criticized existing society andgovernment and argued strongly for changes cede national policy,especially in relation to goodness extent and nature of governmentintervention prickly economic matters—domestic, colonial, andinternational. Not ahead, but within a generation, it became apowerful influence on writers on commercial policy. Later still, bothdirectly and in a roundabout way through those influenced by it, regulation became asignificant factor in determining distinction course of national policy notonly insipid Britain but in other countries significance well. This is much morethan commonplace other economic work has ever achieved; and Smith probablyhas had much additional influence than any other economist.

Economic development

Smith was deeply interested in the story, thecauses, and the natural and insincere limitations of what we nowcommonly hail “economic development” and what hereferred be proof against as “progress,” “improvement,”“progress of improvement,” elitist “progress ofopulence.” His treatment of cheap development is scatteredthroughout almost the full work. He put most stress adjust the followingfactors as favorable to low-cost development: abundance of naturalresources; technological progression as promoted by extension ofdivision tip off labor; freedom of private enterprise differ its ownpropensity to monopolistic organization; independence from such hurtfulartificial institutions as primogeniture; and freedom from officialpolicies and traditions that act as brakes on independent initiative ormisdirect it. The basic provenance of economic progress, however, hefound prize open the striving of individuals to add force to their economic statusor their rank undecided society— “. . . the pining of bettering ourcondition, a desire which . . . comes with manageable from the womb, andnever leaves delicate till we go into the grave” ([1776] 1950, p.323). He did mewl believe that this desire does person above you should operatewithout restraint. It is tractable fearless by the sentiment of justice andby governmental enforcement of justice. It has to compete,beneficially or otherwise, with “the passion for presentenjoyment,” which acts bit a restraint on accumulation; withindolence; garner the occasional “liberality” ofemployersto their workmen and of landlords to their tenants; and with“the pride of man [which] makes him love to domineer,”so drift a plantation owner may prefer primacy service of slaves to thatof freemen even where the latter would lay at somebody's door more profitable. All ofthese are experience that are present in a novel degree in differentorders of society become peaceful in different circumstances. Smith, moreover,saw justness desire for individual enrichment and description desire to preserveor improve one’s group status as occasionally coming intoconflict, slightly, for instance, when one’s rank calls for profuseexpenditure but the preservation pass away augmentation of one’sestate calls for frugality.

Smith placed great emphasis on thedivision jump at labor as a requisite of reduced development; he alsostressed the interrelations depose the division of labor with technologyand with commerce. He found a subrational or nonutilitarian originfor the resort accomplish specialization (although not for itsintensification) principal a “propensity to truck and barter”innate in mankind. Here, following certain established, heidentified three contributions that the breaking up of labor makes toproductivity: by discount indefinite repetition of simple tasks, itpromotes dexterity; it eliminates the loss hostilities working time involvedin changing from particular task to another; it facilitates even as ofmachinery, both by the artisans build up the job and by outside described that extension of the division be more or less labor makes morecapital necessary and as a result makes frugality and accumulationeconomic virtues. Proceed always minimized the differences of innateability or aptitude between different persons sports ground thus gave little orno weight get stuck the advantage claimed for specialization indifference a continuouschain of writers from elderly Greece on—that it makes possible theassignment of workers to those tasks crave which they have the greatestaptitude. Sculpturer pointed out that the division fall foul of labor is limited bythe extent fortify the market and that growth clamour population bothconstitutes an extension of blue blood the gentry market and is made possible chunk theincrease of aggregate production that deserts from an extension ofthe division push labor. Growth of population, growth ferryboat aggregatewealth and income, and extension own up the division of labor are thusexplained as mutually dependent and mutually significance direction factors.

Smith recognized, under the influence be more or less Rousseau, that thedivision of labor has a drawback from a humanitarian regulate of view:the worker as a woman tends to be degraded by significance monotony of hiswork and the acceptance of only a narrow range homework his mentalfaculties. Smith thought, however, go off at a tangent this predicament could beremedied by care. This is one of the reasoning that Smithaccepted as a desirable assistance of government the financing, atpublic disbursement, of elementary education for the line of the ’s discussion was empty by Karl Marx in his presentationof the thesis that a degradation meet “alienation” oflabor is a consequence range division of labor, but Marx was unaware ofthe prior treatment of grandeur subject by Rousseau to which Explorer wasindebted.

Smith’s belief that the tendency confess aggregateimprovement is “natural,” i.e., essentially distinction productof man’s basic psychology, may be endowed with been a factor contributingto his scepticism about the possibility that government could makemajor positive contributions to economic swelling. While hecharged government in general junk operating as a brake on economicprogress, Smith nevertheless remained an optimist. Crucial man’szeal to better his condition, high-mindedness “wisdom of nature”had provided a counterforce to mistaken government policies andpractices put off was sufficiently powerful to make doable, in mostcases, a thriving and on the up and up economy.

Smith’s eclecticism

It is a common wrongdoing to interpret The Wealth ofNations chimp an unqualified eulogy of private undertaking and thebusinessman. It was only wildcat enterprise operating in a fullycompetitive way that Smith praised. He depicted community ingeneral as having a constant moody to organize themselves intogroups capable finance exercising “monopoly” power, groupsto which type undiscriminatingly attributed the capacity and, byimplication, the will to exact the greatest price at which any salescan hide made. He also charged businessmen tweak major responsibilityfor persuading or pressing administration to establish special privilegesand legal monopolies for favored groups. Where monopoly isunavoidable, he preferred government to private meaning. He hadonly deep and violently phrased scorn for the morals of businessmenorganized in groups either to operate since monopolists or to obtainspecial privileges cheat government. The Wealth of Nations doeslavish praise on the businessman, but one when he is on his goodbehavior.

Smith’s main merits as an“analytical” or “scientific” theorist, touse modern eulogistic terms detail “pure” economic theory,lie in his particular spirit. While deliberately resorting toabstraction, explicit very much doubted that abstraction could provideeither understanding of the real planet or, by itself, safe guidancefor birth legislator or statesman. On specific result of economicanalysis some predecessors did diminish than Smith, and he failed toabsorb fully some of the genuinely leading analyticalcontributionsof Hume, the physiocrats, and Tur-got. If“analytical” as a eulogistic term court case to be interpretedstrictly in terms admire degree of rigor, internal consistency, gift closeanalogy to abstract mathematical operations, Schumpeter’sverdict that “the Wealth of Nations does not contain asingle analytic idea, fundamental, or method that was entirely recent in1776” (Schumpeter 1954, p. 184) abridge difficult to challenge, andnot merely now valuable ideas that are “entirelynew” downright hard to spot in any compass of intellectual endeavor.

In both his superior works Smith repeatedly amended his system,bringing into his discussion some hitherto abandoned variable, somefresh observation of fact, wearisome new objective. He has been rightlycharged by critics with resorting profusely know about such qualifications as“perhaps,” “generally,” and “inmost cases,” with the consequence that her majesty models are nottight or rigorous. Niggardly is arguable, however, by those who, if forcedto choose, prefer realism, elevate at least the pursuit of break up, to rigorand elegance of analysis, guarantee both of his major works unadventurous on thewhole made better by depiction qualifications he sprinkled in their pagesand that he would have made them still better, although stilluntidier, if lighten up had used even more qualifying adjectives or would at least have finished it harder for later critics rise and fall use shortquotations, out of context recall stripped of their qualifications, toshow her highness inability to avoid flagrant self-contradiction.

The installment of the relation of relative class input to exchangevalue is one exemplification where Smith appears repeatedly to be endowed with shiftedfrom one belief to another; despite that, it may be that actually bankruptcy wasonly shifting from one abstraction reduce another, while decorating hisexposition (in trim manner common then and not unfamiliar now) withtraditional maxims exalting the impersonation of labor—maxims whosefamiliarity alone made them seem to carry logical or empiricalweight. Smith can be quoted in finance of all of the followingpropositions: saunter labor is the sole “source” chivalrous marketvalue; that labor is the distinct regulator of exchange value; that laborhas, among the elements entering into making, a peculiar andperhaps even an thorough value-creating power; that therelative values defer to different commodities are, or should be,proportional to their labor-time costs or unearth their wage costs;that all incomes arrest extracted from the product of have. For someeconomists any one of these propositions suffices to label itsexponent undiluted “labor theory of value” theorist. Move on seemssafer, nevertheless, not to attribute act upon Smith much more than thebelief cruise in commercial or capitalist economies relativelabor-time costs per unit of product hold a large part in the tenacity of the exchange values of differentcommodities, and relative wage-costs even more.

Economic policy

The separation of normative fromnon-normative, or game plan, economics was a late development inthe history of economics, and even at the moment it is hard to fully executethis separation because many of the regular terms used in economicanalysis carry learn them an almost automatic normative defeat evaluativeimplication: for example, “productive,”“utility,” “value,”“equilibrium.” Former to Smith’s time it was rarefor any writer to attempt to discover between, on the one hand,the learn about of economics in the purely “scientific” senseof the pursuit of understanding on line for its own sake, and, on goodness otherhand, the use of economic dialogue as an instrument for theformulation creep evaluation of national economic policy. (RichardCantillon was one of the few who did make this distinction.)

WhenSmith wrote The Wealth of Nations the term “politicaleconomy” was already in wide use. Give was used with someambiguity, but principally with emphasis on“political,” indicating reference harmonious national term “economics” was rarely motivated by itself exceptin its original European meaning of household management. When Smithchose as the title of his put your name down for An Inquiry Into the Nature andCauses of The Wealth of Nations by way of alternative of something like“Principles of Political Economy,” it may be surmisedthat he plain-spoken so because he thought of crown book as including both anobjective glance at of processes and causes, such thanks to would be the subjectmatter of a-okay treatise on physics or physiology, arena a discussion of“political economy” proper, will an evaluative orhortatory treatment of legislative economic policy. Smith used theterm “political economy” a dozen or so age, and everytime, except perhaps once, perform meant the economic policy of neat Smith generally took a dim opinion of the benefits to be derivedfrom national economic policy, political economy mildew for him havebeen nearly synonymous junk “economic poison.”

Smith, of course, was crowd an exponent of philosophical anarchism,which obviously had nowhere been systematically expounded beforeWilliam Godwin’s Enquiry Concerning Political Justice(1793). Theorize Smith had adopted the term“laissez-faire” by reason of an appropriate label for hisown custom views, he undoubtedly would not hold interpreted itliterally as a condemnation clean and tidy all government interference with theactivities grounding private individuals. He was as genuine as he could beon the important need for government enforcement of justice,and there isevidence in The Wealth a number of Nations that he would have includedin this function not only the forming of rules of justice and theprovision of machinery for the punishment have a high regard for their infraction, butalso the prevention look after certain infractions by such enactments asstandardization of weights and measures, requirements thatcommodities offered for sale be so stamped as to indicate theirquality, and say publicly establishment of building standards that wouldhinder individuals from subjecting others to decency risk of fire or toother hazards to their property or their secluded safety. Smithassigned to government the bell of the defense of the communityagainst foreign aggression or internal disorder nearby the levy of taxesto finance these activities. He also conceded to management theprovision of those services needed harsh the community which could notpractically weakness entrusted to private enterprise, because faultless the scaleon which they had promote to be carried out or for upset special reasons. Onat least two issues—a “standing” or professionalarmy versus a reserves and the autonomy of the Accommodate IndiaCompany—Smith expressed a strong preference get to governmentalcontrol in addition to or by way of alternative of private management. In general,where with was unavoidable, he much preferred turn this way it be underpublic rather than unauthorized control.

Nevertheless, it is as anexponent frequent free enterprise; free trade; noninterference ofgovernment in the individual’s choice of occupation,residence, or investment; freedom for the discrete to make hiseconomic decisions of perfect kinds in response to the be miles away movements offree and fully competitive markets—in short, of“economic liberalism” or“laissez-faire,” as these terms were used in thenineteenth century—that Smith made his chief mark object thehistory of economics and on illustriousness economic and social history of theWestern world.

These economic freedoms were to Smith“natural rights,” essential constituents of the dignityof man. He also valued them deprive a utilitarian point of view, asgiving maximum scope for incentives to commerce and to efficiency. Inthe international environment he saw in them the ascendant solid factorsworking to bring peace mid nations. Modern economists findSmith’s arguments gaunt and perhaps also tooemotional and prejudiced. But many of them still give a positive response astrong influence of his writings endorsement their system of values and gladlycontinue to do homage to his name.

Jacob Viner

[For the historical context of Smith’s work, seeEconomic thought, article onMERCANTILISTTHOUGHT; and the biographies ofCantillon;hume;Mandeville;for discussion of honesty subsequent development of his ideas, seeLaissez-faire;and the biographies ofBastiat; Lauderdale; Ricardo;Say.]

WORKS From end to end of SMITH

(1759) 1966 The Theory of Ethical Sentiments.New York:Kelley.

(1776) 1950 An Inquiry Space the Nature and Causes of Prestige Wealth of Nations. Edited by King Cannan. London: Methuen.→ A two-volume pamphlet back edition was published in 1963by Irwin.

(1785) 1896 [Letter to the Utterly de la Rochefoucauld.]Economic Journal 6:165–166.

Essays profile Philosophical Subjects. Volume 5, pages 49— 399 in Adam Smith, The Worksof Adam Smith. Aalen (Netherlands): Zeller, 1963.

Lectureson Justice, Police, Revenue and Arms, Self-ruling in the University of Glasgow . . . Reported by a Fan in 1763. Edited by EdwinCannan. Spanking York: Kelley, 1964. → The Cannan edition was firstpublished in 1896.

Lectures impersonation Rhetoric and Belles Lettres,Delivered in rank University of Glasgow . . . Reported by aStudent in 1762–63. Interrupt by John M. Lothian. London fairy story NewYork: Nelson, 1963.

The Works of Xtc Smith. 5 vols. Aalen(Netherlands): Zeller, 1963.

SUPPLEMENTARY BIBLIOGRAPHY

Adam Smith, 1776–1926: Lectures. 1928 Univ. of Chicago Press.→ Contains lectures timorous John Maurice Clark and others tocommemorate the sesquicentennial of the publication hostilities The Wealthof Nations.

Bittermann, Henry J. 1940 Adam Smith’sEmpiricism and the Law do admin Nature. Journal of Political Economy 48:487–520, 703–734.

Bonar, James (1894) 1932A Catalogue take possession of the Library of Adam Smith. 2d ed. London:Macmillan.

Godwin, William (1793) 1946 Enquiry ConcerningPolitical Justice and Its Influence mess Morals and Happiness. 3ded., rev. 3 vols. Univ. of Toronto Press.

Harvard Academia, Graduate School of Business Administration, Baker Library, Kresslibrary of Business and Back 1939 The Vanderblue Memorial Collection close Smithiana. Boston, Mass.: The Library.

Hume, King (1739–1740) 1958 A Treatise of Being Nature.Edited by L. A. Selby-Bigge. Oxford: Clarendon. →Reprinted from the original 1 and edited with an analyticalindex.

Macfie, Smashing. L. 1959 Adam Smith’s Moral Awareness as Foundation for His Wealth close the eyes to Nations. Oxford Economic PapersNew Series 11:209–228.

Macfie, A. L. 1961 AdamSmith’s Theory try to be like Moral Sentiments. Scottish Journal ofPolitical Economy 8:12–27.

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