What does Adam Smith have to say?

[dust]

As the "father of economics" and (from what I've seen) a favourite source of quotes for endorsement of modern (capitalist/consumerist) society, I thought The Wealth of the Nations might be interesting to have a look at.

 

It indeed was.

 

 

On economics:

 

"Wherever there is great property, there is great inequality."

— Book V, Chapter I, Part II

 

"Civil government, so far as it is instituted for the security of property, is in reality instituted for the defence of the rich against the poor, or of those who have some property against those who have none at all."

— Book V, Chapter I, Part II

 

"When national debts have once been accumulated to a certain degree, there is scarce, I believe, a single instance of their having been fairly and completely paid. The liberation of the public revenue, if it has ever been brought about at all, has always been brought about by bankruptcy; sometimes by an avowed one, but always by a real one, though frequently by a pretend payment."

— Book V, Chapter III, Part V

 

"The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. A tax upon house-rents, therefore, would in general fall heaviest upon the rich; and in this sort of inequality there would not, perhaps, be anything very unreasonable. It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

— Book V, Chapter II, Part II, Article I

 

"It is unjust that the whole of society should contribute towards an expense of which the benefit is confined to a part of the society."

— Book V, Chapter I, Part IV, Conclusion

 

"Every man, as long as he does not violate the laws of justice, is left perfectly free to pursue his own interest his own way, and to bring both his industry and capital into competition with those of any other man, or order of men."

— Book IV, Chapter IX

 

"Were all nations to follow the liberal system of free exportation and free importation, the different states into which a great continent was divided would so far resemble the different provinces of a great empire. As among the different provinces of a great empire the freedom of the inland trade appears, both from reason and experience, not only the best palliative of a dearth, but the most effectual preventative of a famine."

— Book IV, Chapter V

 

"In the progress of the division of labour, the employment of the far greater part of those who live by labour, that is, of the great body of the people, comes to be confined to a few very simple operations, frequently to one or two. But the understandings of the greater part of men are necessarily formed by their ordinary employments. The man whose whole life is spent in performing a few simple operations, of which the effects are perhaps always the same, or very nearly the same, has no occasion to exert his understanding or to exercise his invention in finding out expedients for removing difficulties which never occur. He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become. The torpor of his mind renders him not only incapable of relishing or bearing a part in any rational conversation, but of conceiving any generous, noble, or tender sentiment, and consequently of forming any just judgment concerning many even of the ordinary duties of private life. Of the great and extensive interests of his country he is altogether incapable of judging, and unless very particular pains have been taken to render him otherwise, he is equally incapable of defending his country in war. The uniformity of his stationary life naturally corrupts the courage of his mind, and makes him regard with abhorrence the irregular, uncertain, and adventurous life of a soldier. It corrupts even the activity of his body, and renders him incapable of exerting his strength with vigour and perseverance in any other employment than that to which he has been bred. His dexterity at his own particular trade seems, in this manner, to be acquired at the expence of his intellectual, social, and martial virtues. But in every improved and civilized society this is the state into which the labouring poor, that is, the great body of the people, must necessarily fall, unless government takes some pains to prevent it."

— Book V, Chapter I, Part III

 

 

On politics:

 

"Fear is in almost all cases a wretched instrument of government, and ought in particular never to be employed against any order of men who have the smallest pretensions to independency."

— Book V, Chapter I, Part III

 

"All registers which, it is acknowledged, ought to be kept secret, ought certainly never to exist."

— Book V, Chapter II, Part II, Appendix to Articles I and II

 

"The violence and injustice of the rulers of mankind is an ancient evil, for which, I am afraid, the nature of human affairs can scarce admit a remedy."

— Book IV, Chapter III, Part II

 

"That wealth, at the same time, which always follows the improvements of agriculture and manufactures, and which in reality is no more than the accumulated produce of those improvements, provokes the invasion of all their neighbours. An industrious, and upon that account a wealthy nation, is of all nations the most likely to be attacked; and unless the state takes some new measures for the public defence, the natural habits of the people render them altogether incapable of defending themselves."

— Book V, Chapter I, Part I

 

 

On life:

 

"In the languor of disease and the weariness of old age, the pleasures of the vain and empty distinctions of greatness disappear. To one, in this situation, they are no longer capable of recommending those toilsome pursuits in which they had formerly engaged him. In his heart he curses ambition, and vainly regrets the ease and the indolence of youth, pleasures which are fled for ever, and which he has foolishly sacrificed for what, when he has got it, can afford him no real satisfaction. In this miserable aspect does greatness appear to every man when reduced either by spleen or disease to observe with attention his own situation, and to consider what it is that is really wanting to his happiness. Power and riches appear then to be, what they are, enormous and operose machines contrived to produce a few trifling conveniencies to the body, consisting of springs the most nice and delicate, which must be kept in order with the most anxious attention, and which, in spite of all our care, are ready every moment to burst into pieces, and to crush in their ruins their unfortunate possessor."

— Book IV, Chapter I

 

 

 

______________

 

 

Hmm

[Marblehead]

So I'm too old to start an evolution. Now what?

[thelerner]

Most people are amazed at how liberal the writings of Adam Smith actually are.

 

Just as interesting, Ronald Reagan the 'father', some might say 'saint' of the modern conservative movement was way more liberal in policy then his predecessors evolved into. From clemency for millions of immigrants, running up huge deficits or (horrors) compromising across the aisle, Reagan did it. Its doubtful he'd gain any nomination in the past decade, he (& his record) would be far too liberal.

[dust]

I'm impressed at how "prophetic" his words are -- given how much the world has changed, it doesn't seem like anything has really changed.

 

Plus ça change plus c'est la même chose..

 

 

 

Just as interesting, Ronald Reagan the 'father', some might say 'saint' of the modern conservative movement was way more liberal in policy then his predecessors evolved into. From clemency for millions of immigrants, running up huge deficits or (horrors) compromising across the aisle, Reagan did it. Its doubtful he'd gain any nomination in the past decade, he (& his record) would be far too liberal.

 

Not sure I understand the terms liberal or conservative anymore. I think they're just more ways of needlessly dividing people.

[joeblast]

Most people are amazed at how liberal the writings of Adam Smith actually are.

 

Just as interesting, Ronald Reagan the 'father', some might say 'saint' of the modern conservative movement was way more liberal in policy then his predecessors evolved into. From clemency for millions of immigrants, running up huge deficits or (horrors) compromising across the aisle, Reagan did it. Its doubtful he'd gain any nomination in the past decade, he (& his record) would be far too liberal.

As the stick measures today, sure...but it has been dragged in that direction purposefully....in both directions, purposefully..

 

I am willing to bet a lot of it he went along with, for the sake of his hide, since they didnt get the job done the first time, and so long as he behaved, there most likely wouldnt be another.

[GrandmasterP]

The Adam Smith Institute carries on in much the same spirit.

http://www.adamsmith.org/about-us/

It's maybe somewhat to the 'right' in UK politics for some people's tastes.

They do describe themselves as 'libertarian' not sure if Adam Smith himself would have been on board with some aspects of libertarianism.

Seems to me that's a fine position to take for those who are financially secure but maybe not such a comfortable place for folks struggling to get by.

Edited January 16, 2015 by GrandmasterP

[dust]

From that About Us page, I wonder if they've read a single word past Book 1 (of The Wealth of the Nations)

 

"Every man, as long as he does not violate the laws of justice, is left perfectly free to pursue his own interest his own way, and to bring both his industry and capital into competition with those of any other man, or order of men."

 

Cool. They'll acknowledge that bit. But:

 

"It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

 

Smith.. advocating interference? They won't like that...

 

 

 

I find this part of Book 1 quite interesting, too:

 

"It appears, accordingly, from the experience of all ages and nations, I believe, that the work done by freemen comes cheaper in the end than that performed by slaves."

http://www.econlib.org/library/Smith/smWN3.html I.8.40

[Brian]

<snip>

"It appears, accordingly, from the experience of all ages and nations, I believe, that the work done by freemen comes cheaper in the end than that performed by slaves."

http://www.econlib.org/library/Smith/smWN3.html I.8.40

It is precisely this reality which caused the phasing out of slavery throughout the Western world in the 18th & 19th centuries -- moral positions gain traction when aligned with pecuniary exigency.