.Adam Smith (baptised 16 June 1723 – 17 July 1790 [OS: 5 June 1723 – 17 July 1790]) was a Scottish moral philosopher and a pioneer of political economics.^ Adam Smith died on July 17, 1790.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Yet there is nothing Adam Smith resented more strongly than any identification of his theory with the selfish system of morality.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Adam Smith says expressly indeed, that there is no other measure of moral conduct than the sympathetic approbation of each individual.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations.^ It is "net revenues" that are available for discretionary uses - either for investing or consuming - or for taxation that does not reach the level of capital levies - that is the measure of national wealth used by Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ Smith goes on at some length explaining that it is the productivity of the nation and not its wealth in money that is the ultimate source of economic power.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ Smith was so opposed to Hobbes’s and Mandeville’s positions that the very first sentence of The Theory of Moral Sentiments begins with their rejection: .

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

.The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics.^ The Wealth of Nations is a work of political economy.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ The first is that scholars are interested in how The Theory of Moral Sentiments and The Wealth of Nations interconnect, not simply in his moral and economic theories as distinct from one another.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ The success of the latter soon eclipsed that of his first work, but the wide celebrity which soon attended the former is attested by the fact of.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.Smith is widely cited as the father of modern economics.^ Adam Smith is often identified as the father of modern capitalism.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ The fundamentals required for economic development are clearly identified by Smith - (fundamentals ignored for decades by supposedly knowledgeable modern economists).

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ As we have already seen, Smith was scarcely the founder of economic science, a science which existed since the medieval scholastics and, in its modern form, since Richard Cantillon.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.Smith studied moral philosophy at the University of Glasgow and Oxford University.^ At the age of fourteen he was sent to the University of Glasgow, where his favourite studies were mathematics and natural sciences, and where he attended the lectures of Dr. Hutcheson, who has been called "the father of speculative philosophy in Scotland in modern times," and whose theory of the Moral Sense had so much influence on Adam Smith's own later ethical speculations.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Smith also plunged into the social and educational associations that were beginning to be formed by the moderate Presbyterian clergy, university professors, literati, and attorneys in both Glasgow and Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Part VII., or Systems of Moral Philosophy, helps in the thirteenth chapter to throw into clear light the relation of Adam Smith's theory to other theories of moral philosophy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.After graduating, he delivered a successful series of public lectures at Edinburgh, leading him to collaborate with David Hume during the Scottish Enlightenment.^ Finally, in 1748, Henry Home, Lord Kames, a judge and a leader of the liberal Scottish Enlightenment and a cousin of David Hume, decided to promote a series of public lectures in Edinburgh to educate lawyers.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ However, focusing on Hume's observations also allow us to see certain other themes that Smith shares with his Scottish Enlightenment cohort: in particular, their commitment to empiricism.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ And while Smith's most famous follower, David Ricardo, was not a Calvinist, his leading immediate disciple, Dugald Stewart, was a Scottish Presbyterian, and the leading Ricardians John R. McCulloch and James Mill were both Scottish and educated in Dugald Stewart's University of Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.Smith obtained a professorship at Glasgow teaching moral philosophy, and during this time he wrote and published The Theory of Moral Sentiments.^ Smith echoes these words throughout A Theory of Moral Sentiments .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ At the age of fourteen he was sent to the University of Glasgow, where his favourite studies were mathematics and natural sciences, and where he attended the lectures of Dr. Hutcheson, who has been called "the father of speculative philosophy in Scotland in modern times," and whose theory of the Moral Sense had so much influence on Adam Smith's own later ethical speculations.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ After Smith published his moral philosophy in his Theory of Moral Sentiments (1759), his increasing fame won him a highly lucrative position in 1764 as tutor to the young duke of Buccleuch.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.In his later life, he took a tutoring position that allowed him to travel throughout Europe, where he met other intellectual leaders of his day.^ They might have even been able to prevent the intial assasination of Shiite leaders which took place just days afer the collapse of the Saddam’s government.

• HorsesAss.Org » Blog Archive » Rep. Adam Smith: “Troop surge is not the answer” 19 January 2010 9:51 UTC horsesass.org [Source type: Original source]

^ While he spoke very warmly of this period of his life, and while he took a deep interest in teaching and mentoring young minds, Smith resigned in 1764 to tutor the Duke of Buccleuch and accompany him on his travels.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

Smith returned home and spent the next ten years writing The Wealth of Nations, publishing it in 1776. He died in 1790.

.Smith was born to Margaret Douglas at Kirkcaldy, Fife, Scotland.^ His father, also Adam Smith (1679-1723), who died shortly before he was born, was a distinguished judge advocate for Scotland and later comptroller of customs at Kirkcaldy, who had married into a well-to-do local landowning family.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Adam Smith was born in June, 1723, in Kirkcaldy, a port town on the eastern shore of Scotland; the exact date is unknown.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Adam Smith was born in 1723 in the small town of Kirkcaldy, near Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.His father, also named Adam Smith, was a lawyer, civil servant, and widower who married Margaret Douglas in 1720 and died six months before Smith was born.^ Self-interest before Adam Smith .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Finally, still another cousin named Adam Smith later served as customs collector at Alloa.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ But as, of all Adam Smith's critics, Jouffroy has been the one who has urged this argument with the greatest force, it will be best to follow his reasoning, before considering the force of the objection.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[1] .Although the exact date of Smith's birth is unknown, his baptism was recorded on 16 June 1723 at Kirkcaldy.^ Adam Smith was born in June, 1723, in Kirkcaldy, a port town on the eastern shore of Scotland; the exact date is unknown.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[2] .Though few events in Smith's early childhood are known, Scottish journalist and Smith's biographer John Rae recorded that Smith was abducted by gypsies at the age of four and released when others went to rescue him.^ However, focusing on Hume's observations also allow us to see certain other themes that Smith shares with his Scottish Enlightenment cohort: in particular, their commitment to empiricism.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ As with most of the other Scottish philosophers, Hume and Smith held that knowledge is acquired through the senses rather than through innate ideas, continuing the legacy of John Locke more so than René Descartes .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ However, focusing on Hume’s observations also allow us to see certain other themes that Smith shares with his Scottish Enlightenment cohort: in particular, their commitment to empiricism.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^{[N .1]} Smith was close to his mother, who likely encouraged him to pursue his scholarly ambitions.^ Durable consumer goods, like houses, were again, for Smith, 'unproductive', although he grudgingly conceded that a house 'is no doubt extremely useful' to the person who lives in it.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Even though an inveterate plagiarist, Smith had a Columbus complex, accusing close friends incorrectly of plagiarizing him.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ In contrast, then, to those historians who praise Smith for his empirical grasp of contemporary economic and industrial affairs, Adam Smith was oblivious to the important economic events around him.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[4] .He attended the Burgh School of Kirkcaldy—characterised by Rae as "one of the best secondary schools of Scotland at that period"—from 1729 to 1737.^[3] While there, Smith studied Latin, mathematics, history, and writing.^ But as, of all Adam Smith's critics, Jouffroy has been the one who has urged this argument with the greatest force, it will be best to follow his reasoning, before considering the force of the objection.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The town of Kirkcaldy was militantly Presbyterian, and in the Burgh School in the town he met many young Scottish Presbyterians, one of whom, John Drysdale, was to become twice moderator of the general assembly of the Church of Scotland.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ As a young philosopher, Smith experimented with different topics, and there is a collection of writing fragments to compliment his lecture notes and early essays.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[4]

.Smith entered the University of Glasgow when he was fourteen and studied moral philosophy under Francis Hutcheson.^ At the age of fourteen he was sent to the University of Glasgow, where his favourite studies were mathematics and natural sciences, and where he attended the lectures of Dr. Hutcheson, who has been called "the father of speculative philosophy in Scotland in modern times," and whose theory of the Moral Sense had so much influence on Adam Smith's own later ethical speculations.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ From 1737 to 1740, Adam Smith studied at Glasgow College, where he fell under the spell of Francis Hutcheson, and imbibed the excitement of the ideas of classical liberalism, natural law and political economy.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Smith also plunged into the social and educational associations that were beginning to be formed by the moderate Presbyterian clergy, university professors, literati, and attorneys in both Glasgow and Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[4] .Here, Smith developed his passion for liberty, reason, and free speech.^ Yet here Smith fell into an iron trap of circular reasoning.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.In 1740, Smith was awarded the Snell exhibition and left to attend Balliol College, Oxford.^ Smith was sent to Balliol College, Oxford, on a scholarship designed to nurture future Episcopalian clerics, but he was unhappy at the wretched instruction in the Oxford of his day, and returned after six years, at the age of 23, without having taken holy orders.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[5]

.Smith considered the teaching at Glasgow far superior to that at Oxford, which he found intellectually stifling.^ Why then were these preceding economists, analytically far superior to Smith and also in the laissez-faire framework, so readily forgotten?

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ The superiority of market mechanisms over administered alternatives - whether directed by government, private associations, experts or intellectuals - is set forth by Smith with classic clarity.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ So far are we from doing this, that we consider it our first duty to stifle our emotions of sympathy or antipathy, in order to arrive at an impartial judgment.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[6] .In Book V, Chapter II of The Wealth of Nations, Smith wrote: "In the University of Oxford, the greater part of the public professors have, for these many years, given up altogether even the pretence of teaching."^ It is "net revenues" that are available for discretionary uses - either for investing or consuming - or for taxation that does not reach the level of capital levies - that is the measure of national wealth used by Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ Smith goes on at some length explaining that it is the productivity of the nation and not its wealth in money that is the ultimate source of economic power.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ In the Wealth of Nations, Adam Smith delivered the following encomium to the Presbyterian clergy: 'There is scarce, perhaps, to be found anywhere in Europe, a more learned, decent, independent, and respectable set of men than the greater part of the Presbyterian clergy of Holland, Geneva, Switzerland, and Scotland.'

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.Smith is also reported to have complained to friends that Oxford officials once discovered him reading a copy of David Hume's Treatise on Human Nature, and they subsequently confiscated his book and punished him severely for reading it.^ Smith's suggestion, then, is to have faith in the unfolding of nature, and in the principles that govern human activity—moral, social, economic, or otherwise.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ The term "sympathy" is Hume's, but Smith's friend gives little indication as to how it was supposed to work or as to its limits.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ His friend David Hume (1752) had called for the radical repudiation of this institution on behalf of 100 per cent specie-reserve banking.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[3][7][8] .According to William Robert Scott, "The Oxford of [Smith's] time gave little if any help towards what was to be his lifework."^ It is true that Smith spent little time or energy on scholarship and writing after his appointment; but there were leaves of absence available which Smith showed no interest in pursuing.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Scott , William Robert.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[9] .Nevertheless, Smith took the opportunity while at Oxford to teach himself several subjects by reading many books from the shelves of the large Oxford library.^ By reference to his own experience, every reader may easily test for himself the truth or falsity of Adam Smith's argument upon this subject.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ To the first time reader, therefore, it may seem more daunting than Smith’s earlier work, but in many ways, it is actually a simpler read.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[10] .When Smith was not studying on his own, his time at Oxford was not a happy one, according to his letters.^ Leaving Oxford, which for most men means an entire change of life, meant for him simply a change in the scene of his studies; a transfer of them from one place to another.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The sense of the propriety or impropriety of a moral action or sentiment is, according to Adam Smith, only one side of the fact of moral approbation, a sense of their merit or demerit constituting the other side.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Adam Smith's own theory differed from all these, in that it took account of all these three different aspects of virtue together, and gave no exclusive preference to any one of them.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[11] .Near the end of his time at Oxford, Smith began suffering from shaking fits, probably the symptoms of a nervous breakdown.^ It was perhaps by reason of this attraction that at the end of seven years at Oxford Adam Smith declined to take orders.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[12] He left Oxford University in 1746, before his scholarship ended.^[12][13]

.In Book V of The Wealth of Nations, Smith comments on the low quality of instruction and the meager intellectual activity at English universities, when compared to their Scottish counterparts.^ It is "net revenues" that are available for discretionary uses - either for investing or consuming - or for taxation that does not reach the level of capital levies - that is the measure of national wealth used by Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ Smith goes on at some length explaining that it is the productivity of the nation and not its wealth in money that is the ultimate source of economic power.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ At the bicentennial of his magnum opus , An Inquiry into the Nature and the Causes of the Wealth of Nations (1776), a veritable flood of books, essays, and memorabilia poured forth about the quiet Scottish professor.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.He attributes this both to the rich endowments of the colleges at Oxford and Cambridge, which made the income of professors independent of their ability to attract students, and to the fact that distinguished men of letters could make an even more comfortable living as ministers of the Church of England.^ The opening of new trade routes to Asia could have been even more important if the various trading nations had not restricted the East Indies trade to great monopolies.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ The many complicating factors make judgments based on payments balances even more impossible.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ The consciousness of an inability to sympathize with his distress, if we think his grief excessive, gives us even more pain than the sympathetic sorrow which the most complete accordance with him could make us feel.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[8]

.Smith began delivering public lectures in 1748 at Edinburgh under the patronage of Lord Kames.^ After nearly two years spent at home, Adam Smith removed to Edinburgh, where, under the patronage of Lord Kames, so well known in connexion with the Scotch literature of the last century, he delivered lectures on rhetoric and belles lettres ; and the same subject formed the greater part of his lectures as Professor of Logic at Glasgow, to which post he was elected in 1751, at the age of twenty-eight.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Finally, in 1748, Henry Home, Lord Kames, a judge and a leader of the liberal Scottish Enlightenment and a cousin of David Hume, decided to promote a series of public lectures in Edinburgh to educate lawyers.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Shortly after graduating from Oxford, Smith presented public lectures on moral philosophy in Edinburgh, and then, with the assistance of the literati, he secured his first position as the Chair of Logic at Glasgow University.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[14] .His lecture topics included rhetoric and belles-lettres, and later the subject of "the progress of opulence". On this latter topic he first expounded his economic philosophy of "the obvious and simple system of natural liberty". While Smith was not adept at public speaking, his lectures met with success.^ The success of the latter soon eclipsed that of his first work, but the wide celebrity which soon attended the former is attested by the fact of.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Smith's suggestion, then, is to have faith in the unfolding of nature, and in the principles that govern human activity—moral, social, economic, or otherwise.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ There is a collection of student lecture notes that recount Smith’s discussions of style, narrative, and moral propriety in rhetorical contexts.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[15]

.In 1750, he met the philosopher David Hume, who was his senior by more than a decade.^ As with most of the other Scottish philosophers, Hume and Smith held that knowledge is acquired through the senses rather than through innate ideas, continuing the legacy of John Locke more so than René Descartes .

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Indeed, while David Hume knew nothing of utility and spoke of labour as the source of value, he was far sounder on value theory than his close friend Adam Smith.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ By the circumstances of his birth, his education, like that of David Hume, devolved in his early years upon his mother, of whom one would gladly know more than has been vouchsafed by her son's biographer.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.In their writings covering history, politics, philosophy, economics, and religion, Smith and Hume shared closer intellectual and personal bonds than with other important figures of the Scottish Enlightenment.^ Smith’s discussion of history illustrates two other important points.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Smith's discussion of history illustrates two other important points.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ "History and thoery in the Scottish Enlightenment."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[16]

.In 1751, Smith earned a professorship at Glasgow University teaching logic courses.^ After holding the chair of logic at Glasgow for only one year (1751–1752), Smith was appointed to the Chair of Moral Philosophy, the position originally held by Hutcheson.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Shortly after graduating from Oxford, Smith presented public lectures on moral philosophy in Edinburgh, and then, with the assistance of the literati, he secured his first position as the Chair of Logic at Glasgow University.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ While Smith held the chair of logic at Glasgow University, he lectured more on rhetoric than on traditional Aristotelian forms of reasoning.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

.When the head of Moral Philosophy died the next year, Smith took over the position.^ Smith was so opposed to Hobbes’s and Mandeville’s positions that the very first sentence of The Theory of Moral Sentiments begins with their rejection: .

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Smith was so opposed to Hobbes's and Mandeville's positions that the very first sentence of The Theory of Moral Sentiments begins with their rejection: .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ In Smith’s case, this position took him to France where he spent two years engaged with the philosophes —a tight-knit group of French philosophers analogous to Smith’s own literati—in conversations that would make their way into The Wealth of Nations.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[15] He worked as an academic for the next thirteen years, which he characterized as "by far the most useful and therefore by far the happiest and most honourable period [of his life]".^[17]

.Smith published The Theory of Moral Sentiments in 1759, embodying some of his Glasgow lectures.^ It was to have been an improvement on the work of Grotius on the same subject, and the Theory of Moral Sentiments concludes with a promise which, unfortunately, was never fulfilled.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ But although this disposition to sympathize with the rich is conducive to the good order of society, Adam Smith admits that it to a certain extent tends to corrupt moral sentiments.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ This part of the theory may claim, therefore, not only to be as good as any other theory, but to be in strict keeping with the vast amount of variable moral sentiment which actually exists in the world.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.This work was concerned with how human morality depends on sympathy between agent and spectator, or the individual and other members of society.^ The term "sympathy" is Hume's, but Smith's friend gives little indication as to how it was supposed to work or as to its limits.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ According to Hutcheson, a sense of unity among human beings allows for the possibility of other-oriented actions even though individuals are often motivated by self-interest.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Conscience, ac- cording to Butler, was a faculty natural to man, in virtue of which he was a moral agent; a faculty or principle of the human heart, in kind and nature supreme over all others, and bearing its own authority For being so.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.Smith defined "sympathy" as the feeling of moral sentiments.^ Smith was so opposed to Hobbes’s and Mandeville’s positions that the very first sentence of The Theory of Moral Sentiments begins with their rejection: .

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ According to Smith, our sentiments give rise to approval or condemnation of a moral act.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Smith was so opposed to Hobbes's and Mandeville's positions that the very first sentence of The Theory of Moral Sentiments begins with their rejection: .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

.He bases his explanation not on a special "moral sense", as the third Lord Shaftesbury and Hutcheson had done, nor on utility as Hume did, but on sympathy.^ The term “moral sense” was first coined by Sir Anthony Ashley Cooper, Third Earl of Shaftesbury , whose work Smith read and who became a focal point in the Scots’ discussion, although he himself was not Scottish.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Before proceeding with this development of his theory, it is worth noticing again its close correspondence with that of Hume, who likewise traced moral sentiments to a basis of physical sympathy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Thus Lord Shaftesbury postulated the existence of a moral sense, sufficient of itself to make us eschew vice and follow after virtue; and this moral sense, or primitive instinct for good, was implanted in us by nature, and carried its own authority with it.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.Following the publication of The Theory of Moral Sentiments, Smith became so popular that many wealthy students left their schools in other countries to enroll at Glasgow to learn under Smith.^ Smith echoes these words throughout A Theory of Moral Sentiments .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Smith was so opposed to Hobbes’s and Mandeville’s positions that the very first sentence of The Theory of Moral Sentiments begins with their rejection: .

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ According to Smith, our sentiments give rise to approval or condemnation of a moral act.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[18] .After the publication of The Theory of Moral Sentiments, Smith began to give more attention to jurisprudence and economics in his lectures and less to his theories of morals.^ For Smith not only contributed nothing of value to economic thought; his economics was a grave deterioration from his predecessors: from Cantillon, from Turgot, from his teacher Hutcheson, from the Spanish scholastics, even oddly enough from his own previous works, such as the Lectures on Jurisprudence (unpublished, 1762-63, 1766) and the Theory of Moral Sentiments (1759).

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ It was to have been an improvement on the work of Grotius on the same subject, and the Theory of Moral Sentiments concludes with a promise which, unfortunately, was never fulfilled.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ But although this disposition to sympathize with the rich is conducive to the good order of society, Adam Smith admits that it to a certain extent tends to corrupt moral sentiments.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[19] .For example, Smith lectured that labor—rather than the nation's quantity of gold or silver—is the cause of increase in national wealth.^ Labor brings wealth, Smith argues.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ "'Less Abused than I had reason to Expect': The reception of The Wealth of Nations in Britain 1776-90."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Free trade, Smith argues, rather than diminishing the wealth of the nation, increases it because it provides more occasion for labor and therefore more occasion to create more wealth.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[18]

.In 1762, the academic senate of the University of Glasgow conferred on Smith the title of Doctor of Laws (LL.D.).^ Smith also plunged into the social and educational associations that were beginning to be formed by the moderate Presbyterian clergy, university professors, literati, and attorneys in both Glasgow and Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ In 1740, Smith earned an MA with great distinction at the University of Glasgow.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ While Smith held the chair of logic at Glasgow University, he lectured more on rhetoric than on traditional Aristotelian forms of reasoning.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

.At the end of 1763, he obtained a lucrative offer from Charles Townshend (who had been introduced to Smith by David Hume) to tutor his stepson, Henry Scott, the young Duke of Buccleuch.^ There are many who challenge its assertions, of course, but it is hard to deny that Smith’s positions in WN are defensible even if, in the end, some may conclude that he is wrong.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Indeed, while David Hume knew nothing of utility and spoke of labour as the source of value, he was far sounder on value theory than his close friend Adam Smith.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ With this in mind, there are certainly readers who will argue that Smith, despite his rejection of Hobbes and Mandeville, ends up offering no universally binding moral principles.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

Smith subsequently resigned from his professorship to take the tutoring position. .Because he resigned in the middle of the term, Smith attempted to return the fees he had collected from his students, but they refused.^ There is a collection of student lecture notes that recount Smith’s discussions of style, narrative, and moral propriety in rhetorical contexts.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ There is a collection of student lecture notes that recount Smith's discussions of style, narrative, and moral propriety in rhetorical contexts.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^[20]

.Smith's tutoring job entailed touring Europe with Henry Scott while teaching him subjects including proper Polish.^ While he spoke very warmly of this period of his life, and while he took a deep interest in teaching and mentoring young minds, Smith resigned in 1764 to tutor the Duke of Buccleuch and accompany him on his travels.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^[20] .Smith was paid £300 per year plus expenses along with £300 per year pension, which was roughly twice his former income as a teacher.^ 'Cost of production' is defined by Adam Smith as total expenses paid to factors of production, that is, wages, profits and rent.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ For three years of tutoring, which he spent with the young duke in France, Smith was awarded a lifetime annual salary of £300, twice his annual salary at Glasgow.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[20] .Smith first traveled as a tutor to Toulouse, France, where he stayed for a year and a half.^ His tutorial task accomplished, Smith returned to his home town of Kirkcaldy, where, secure in his lifetime stipend, he worked for ten years to complete the Wealth of Nations, which he had started at the beginning of his stay in France.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ For three years of tutoring, which he spent with the young duke in France, Smith was awarded a lifetime annual salary of £300, twice his annual salary at Glasgow.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[20] .According to accounts, Smith found Toulouse to be very boring, and he wrote to Hume that he "had begun to write a book in order to pass away the time".^[20] After touring the south of France, the group moved to Geneva.^ Then a tour in the South of France was followed by two months at Geneva; and from Christmas, 1765, to the following October the travellers were in Paris, this latter period being the only one of any general interest, on account of the illustrious acquaintances which the introductions of Hume enabled Adam Smith to make in the French capital.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ As Smith himself admitted, in addition to labour time, 'the different degrees of hardship endured or ingenuity exercised must likewise be taken into account'.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Very good wines from hothouse grapes can be made in Scotland, Smith notes, but it costs 30 times more than similar imports.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

While in Geneva, Smith met with the philosopher Voltaire.^[21]

.After staying in Geneva, the party went to Paris, where Smith came to know intellectual leaders such as Benjamin Franklin,^[22] Turgot, Jean D'Alembert, André Morellet, Helvétius and, in particular, Francois Quesnay, the head of the Physiocratic school, whose academic products he respected greatly.^ "The house which we have long lived in, the tree whose verdure and shade we have long enjoyed, are both looked upon with a sort of respect which seems due to such benefactors.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[23] .The physiocrats believed that wealth came from production and not from the attainment of precious metals, which was adverse to mercantilist thought.^ Smith calls this “stock.” Mercantilists sought to restrict trade because this increased the assets within the borders which, in turn, were thought to increase wealth.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Here, Smith is indebted to the physiocrats, French economists who believed that agricultural labor was the primary measure of national wealth.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ Mercantilists sought to restrict trade because this increased the assets within the borders which, in turn, were thought to increase wealth.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

.They also believed that agriculture tended to produce wealth and that merchants and manufacturers did not.^ Here, Smith is indebted to the physiocrats, French economists who believed that agricultural labor was the primary measure of national wealth.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ The physiocrats did not see that the husbandman was maintained by the manufacturing industries of thrashing, milling, and baking, just as much as the millers or the tailors are maintained by the agricultural industries of ploughing and reaping.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ One of the concerns that is most pervasive in The Wealth of Nations is the extent to which the private interests of merchants and manufacturers are contrary to the national interest.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^[22] While Smith did not embrace all of the physiocrats' ideas, he did say that physiocracy was "with all its imperfections [perhaps] the nearest approximation to the truth that has yet been published upon the subject of political economy".^[24]

.In 1766, Henry Scott's younger brother died in Paris, and Smith's tour as a tutor ended shortly thereafter.^ It is likely that David Hume attended Smith's Edinburgh lectures in 1752, for the two became fast friends shortly thereafter.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[24] .Smith returned home that year to Kirkcaldy, and he devoted much of the next ten years to his magnum opus.^ Suddenly, only ten or a dozen years after the lectures, Smith finds himself unable to solve the value paradox.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ After his travels, Smith returned to his home town of Kirkcaldy to complete The Wealth of Nations .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ The next ten years of his life Adam Smith spent at home with his mother and cousin, preparing the work on which his fame now chiefly rests.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[25] .There he befriended Henry Moyes, a young blind man who showed precocious aptitude.^ In Rome there was a law which compelled any one who, by reason of his horse taking fright and becoming unmanageable, rode over another man's slave, to compensate the loss.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The man himself who thus unintentionally hurts another shows some sense of his own demerit by at least offering an apology.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.As well as teaching Moyes himself, Smith secured the patronage of David Hume and Thomas Reid in the young man's education.^ Indeed, while David Hume knew nothing of utility and spoke of labour as the source of value, he was far sounder on value theory than his close friend Adam Smith.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Such is Adam Smith's account of the character of the Prudent Man, a character which he himself admits commands rather a cold esteem than any very ardent love or admiration.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ It is likely that David Hume attended Smith's Edinburgh lectures in 1752, for the two became fast friends shortly thereafter.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[26] .In May 1773, Smith was elected fellow of the Royal Society of London,^[27] and was elected a member of the Literary Club in 1775.^[28] The Wealth of Nations was published in 1776 and was an instant success, selling out the first edition in only six months.^ The book was first published in 1776.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ It is "net revenues" that are available for discretionary uses - either for investing or consuming - or for taxation that does not reach the level of capital levies - that is the measure of national wealth used by Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ Smith goes on at some length explaining that it is the productivity of the nation and not its wealth in money that is the ultimate source of economic power.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^[29]

.In 1778, Smith was appointed to a post as commissioner of customs in Scotland and went to live with his mother in Panmure House in Edinburgh's Canongate.^ Eventually, Smith moved to Edinburgh with his mother and was appointed commissioner of customs in 1778; he did not publish anything substantive for the remainder of his life.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ The fame of the Wealth of Nations led his proud erstwhile pupil, the Duke of Buccleuch, to help secure for Smith in 1778 the highly paid post of commissioner of Scottish customs at Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Durable consumer goods, like houses, were again, for Smith, 'unproductive', although he grudgingly conceded that a house 'is no doubt extremely useful' to the person who lives in it.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[30] .Five years later, he became one of the founding members of the Royal Society of Edinburgh,^[31] and from 1787 to 1789 he occupied the honorary position of Lord Rector of the University of Glasgow.^ Smith also plunged into the social and educational associations that were beginning to be formed by the moderate Presbyterian clergy, university professors, literati, and attorneys in both Glasgow and Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Five years ago I had to remember a lyric or two and use Google searches later to find the song title.

• blog.adamsmith.cc 19 January 2010 9:51 UTC blog.adamsmith.cc [Source type: General]

^ Individuals may prefer, say, one unit of a consumption good now to two or even five units of the good next year.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[32] .He died in the northern wing of Panmure House in Edinburgh on 17 July 1790 after a painful illness and was buried in the Canongate Kirkyard.^ Adam Smith died on July 17, 1790.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^[33] On his death bed, Smith expressed disappointment that he had not achieved more.^[34]

.Smith's literary executors were two friends from the Scottish academic world: the physicist and chemist Joseph Black, and the pioneering geologist James Hutton.^ The two years after the publication of his greatest work Adam Smith spent in London, in the midst of that literary society which we know so well through the pages of Boswell.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ It is likely that David Hume attended Smith's Edinburgh lectures in 1752, for the two became fast friends shortly thereafter.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[35] .Smith left behind many notes and some unpublished material, but gave instructions to destroy anything that was not fit for publication.^ There are many who challenge its assertions, of course, but it is hard to deny that Smith’s positions in WN are defensible even if, in the end, some may conclude that he is wrong.

• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]
• Smith, Adam [The Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.iep.utm.edu [Source type: Original source]

^ If, for example, as in the case of Smith, the government is supposed to supply public works, how many should it provide and how much should be spent?

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[36] .He mentioned an early unpublished History of Astronomy as probably suitable, and it duly appeared in 1795, along with other material such as Essays on Philosophical Subjects.^ Yet in his Essay on the External Senses , of which the date is uncertain, and in his History of Astronomy, which he certainly wrote before 1768, mention is made by Adam Smith of the association of ideas.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ In an unpublished essay on the history of astronomy, Smith writes that Newton's system, had "gained the general and complete approbation of mankind," and that it ought to be considered "the greatest discovery that ever was made by man."

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ As a young philosopher, Smith experimented with different topics, and there is a collection of writing fragments to compliment his lecture notes and early essays.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^[35]

.Not much is known about Smith's personal views beyond what can be deduced from his published articles.^ Echoing but tempering Mandeville's claim about private vices becoming public benefits, Smith illustrates that personal needs are complementary and not mutually exclusive.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ (Smith's views about money are scattered widely throughout his book.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

His personal papers were destroyed after his death, at his own request.^[36] .He never married^[38] and seems to have maintained a close relationship with his mother, with whom he lived after his return from France and who died six years before his own death.^ He survived his mother only six years, his cousin about two; and he had passed sixty when the former died.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Seven years later, 1776, the Wealth of Nations appeared, and Hume, who was then dying, again wrote his friend a congratulatory letter.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Despite his baptism and his mother's pressure, Smith remained an ardent Presbyterian, and returning to Edinburgh in 1746, he remained unemployed for two years.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[39]

.Contemporary accounts describe Smith as an eccentric but benevolent intellectual, comically absent minded, with peculiar habits of speech and gait and a smile of "inexpressible benignity".^[40] He was known to talk to himself, and had occasional spells of imaginary illness.^ As Smith himself admitted, in addition to labour time, 'the different degrees of hardship endured or ingenuity exercised must likewise be taken into account'.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Among Smith's contemporaries, Gibbon is well-known for the care with which he provided references and the same is true of the best-known agricultural writer of Smith's day, Arthur Young.'

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Such is Adam Smith's account of the character of the Prudent Man, a character which he himself admits commands rather a cold esteem than any very ardent love or admiration.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[34] Smith is often described as a prototypical absent-minded professor.^[41] He is reported to have had books and papers stacked up in his study, with a habit he developed during childhood of speaking to himself and smiling in rapt conversation with invisible companions.^[41]

Various anecdotes have discussed his absentminded nature. .In one story, Smith took Charles Townshend on a tour of a tanning factory and while discussing free trade, Smith walked into a huge tanning pit from which he had to be removed.^ Perhaps but it also means that Smith was not content to abide by free market choices between growth on the one hand, and consumption on the other.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Adam Smith's own theory differed from all these, in that it took account of all these three different aspects of virtue together, and gave no exclusive preference to any one of them.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ But for Smith the division of labour took on swollen and gigantic importance, putting into the shade such crucial matters as capital accumulation and the growth of technological knowledge.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[42] Another episode records that he put bread and butter into a teapot, drank the concoction, and declared it to be the worst cup of tea he ever had. .In another example, Smith went out walking and daydreaming in his nightgown and ended up 15 miles (24 km) outside town before nearby church bells brought him back to reality.^ Hence it is that we often feel for another what he cannot feel him- self, that passion arising in our own breast from the mere imagination which even the reality fails to arouse in his.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ When Smith upbraided Ferguson for not acknowledging Smith's precedence in the pin-factory example, Ferguson replied that he had borrowed nothing from Smith, but indeed that both had taken the example from a French source 'where Smith had been before him'.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Another terrible loss inflicted on economic thought by Adam Smith was his dropping out of the concept of the entrepreneur, so important to the contributions of Cantillon and Turgot.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[41][42]

Smith is reported to have been an odd-looking fellow. One author stated that Smith "had a large nose, bulging eyes, a protruding lower lip, a nervous twitch, and a speech impediment".^[8] Smith is reported to have acknowledged his looks at one point saying, "I am a beau in nothing but my books."^[8] Smith "never" sat for portraits ^[43], so depictions of him created during his lifetime were drawn from memory, with rare exceptions. .The most famous examples were a profile by James Tassie and two etchings by John Kay.^ And while Smith's most famous follower, David Ricardo, was not a Calvinist, his leading immediate disciple, Dugald Stewart, was a Scottish Presbyterian, and the leading Ricardians John R. McCulloch and James Mill were both Scottish and educated in Dugald Stewart's University of Edinburgh.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ For in the Principles, Ferguson summed up the pin-factory example that constituted the single most famous passage in the Wealth of Nations.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[44] .The line engravings produced for the covers of 19th century reprints of The Wealth of Nations were based largely on Tassie's medallion.^ "Genius versus Capital: Eighteenth Century theories of Genius and Adam Smith's Wealth of Nations ."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[45]

.There has been considerable scholarly debate about the nature of Smith's religious views.^ While there is also evidence that Smith allowed students to take notes, the point about his crabbed temper and Columbus complex is well made.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ But as many of them are derived from a partial and imperfect view of nature, there are many of them too in some respects in the wrong."

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The universities of the day were viewed by Smith with considerable disdain He provides an interpretation of the history of education going back to the ancient Greeks.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

.Smith's father had a strong interest in Christianity and belonged to the moderate wing of the Church of Scotland.^ Clark, Ian D. L. "From Protest to Reaction: The Moderate regime in the Church of Scotland, 1752-1805."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[46] .In addition to the fact that he received the Snell Exhibition, Smith may have also moved to England with the intention of pursuing a career in the Church of England.^ Even England, which has so far born vast financial burdens as a result of its many conflicts, may not forever be immune from this fact.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

At Oxford, Smith rejected Christianity and it is generally believed that he returned to Scotland as a deist.^[47]

.Economist Ronald Coase has challenged the view that Smith was a deist,^[48] stating that while Smith may have referred to the "Great Architect of the Universe", other scholars have "very much exaggerated the extent to which Adam Smith was committed to a belief in a personal God".^[49] He based this on analysis of a remark in The Wealth of Nations where Smith writes that the curiosity of mankind about the "great phenomena of nature" such as "the generation, the life, growth and dissolution of plants and animals" has led men to "enquire into their causes". Coase notes Smith's observation that "[s]uperstition first attempted to satisfy this curiosity, by referring all those wonderful appearances to the immediate agency of the gods". Smith's distant friend and colleague David Hume, with whom he agreed on most matters, was described by contemporaries as an atheist, although there is some debate about the exact nature of his views among modern philosophers.^ Adam Smith's remarks on this subject.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Adam Smith into the Twenty-First Century.

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Adam Smith and the Wealth of Nations : Bicentennial Essays 1776-1976 .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[50]

.In a letter to William Strahan, Smith's account of Hume's courage and tranquility in the face of death aroused violent public controversy,^[51] since it contradicted the assumption, widespread among orthodox believers, that an untroubled death was impossible without the consolation of religious belief.^ It is impossible to truly understand why Smith makes the political claims he does without connecting them to his moral claims, and vice versa.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ According to Smith, a theory must first be believable ; it must soothe anxiety by avoiding any gaps in its account.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ A few of his letters are published in Lord Brougham's Account of Adam Smith's Life and Works , i.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[52]

.In 1759, Smith published his first work, The Theory of Moral Sentiments.^ Smith echoes these words throughout A Theory of Moral Sentiments .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ According to Smith, our sentiments give rise to approval or condemnation of a moral act.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ It was to have been an improvement on the work of Grotius on the same subject, and the Theory of Moral Sentiments concludes with a promise which, unfortunately, was never fulfilled.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.He continued to revise the work throughout his life, making extensive revisions to the final (6th) edition shortly before his death in 1790.^{[N 2]} Although The Wealth of Nations is widely regarded as Smith's most influential work, it has been reported that Smith himself "always considered his Theory of Moral Sentiments a much superior work to his Wealth of Nations".^[54] P. J. O'Rourke, author of the commentary On The Wealth of Nations (2007), has agreed, calling The Theory of Moral Sentiments "the better book".^[55] It was in this work that Smith first referred to the "invisible hand" to describe the apparent benefits to society of people behaving in their own interests.^ On the other hand, The Wealth of Nations , as it is most often called, is not a book on economics.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ The Theory of Moral Sentiments was first published in 1759, when its author was thirty-six; the Wealth of Nations in 1776, when he was fifty-three.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ After his death, The Wealth of Nations continued to grow in stature and The Theory of Moral Sentiments began to fade into the background.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^[56]

.In The Theory of Moral Sentiments, Smith critically examined the moral thinking of the time and suggested that conscience arises from social relationships.^ Smith echoes these words throughout A Theory of Moral Sentiments .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ If movement toward social norms were the only component to sympathy, Smith's theory would be a recipe for homogeneity alone.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ According to Smith, our sentiments give rise to approval or condemnation of a moral act.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^[57] .His aim in the work is to explain the source of mankind's ability to form moral judgements, in spite of man's natural inclinations toward self-interest.^ It is also concerned with the ideal form of government for commercial advancement and the pursuit of self-interest.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ Secondary sources on Smith flooded the marketplace and interest in Smith's work as a whole has reached an entirely new audience.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ The approbation or disapprobation of mankind is the first source of personal self-approbation or the contrary.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.Smith proposes a theory of sympathy in which the act of observing others makes people aware of themselves and the morality of their own behavior.^ If movement toward social norms were the only component to sympathy, Smith's theory would be a recipe for homogeneity alone.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ Smith was so opposed to Hobbes's and Mandeville's positions that the very first sentence of The Theory of Moral Sentiments begins with their rejection: .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ Sympathy is the foundation for moral deliberation, Smith argues, and Hutcheson's system has no room for it.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

Haakonssen writes that in Smith's theory, "Society is ... the mirror in which one catches sight of oneself, morally speaking."^[58]

.Because The Theory of Moral Sentiments emphasizes sympathy for others while The Wealth of Nations famously emphasizes the role of self interest, some scholars have perceived a conflict between these works.^ The Wealth of Nations is a work of political economy.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ The first is that scholars are interested in how The Theory of Moral Sentiments and The Wealth of Nations interconnect, not simply in his moral and economic theories as distinct from one another.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ Smith echoes these words throughout A Theory of Moral Sentiments .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

.As one economic historian observed: "Many writers, including the present author at an early stage of his study of Smith, have found these two works in some measure basically inconsistent."^ To investigate Smith's work, therefore, is to ask many of the great questions that we all struggle with today, including those that emphasize the relationship of morality and economics.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ The great transgressions of these companies are set forth by Adam Smith at some length.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ The two years after the publication of his greatest work Adam Smith spent in London, in the midst of that literary society which we know so well through the pages of Boswell.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[59] .In recent years, however, most scholars of Smith's work have argued that no contradiction exists.^ Sympathy is the foundation for moral deliberation, Smith argues, and Hutcheson's system has no room for it.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ The two years after the publication of his greatest work Adam Smith spent in London, in the midst of that literary society which we know so well through the pages of Boswell.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ There is no gainsaying the fact that Smith totally contradicted himself between Book I and Book V of the Wealth of Nations.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.In The Theory of Moral Sentiments, Smith develops a theory of psychology in which individuals seek the approval of the "impartial spectator" as a result of a natural desire to have outside observers sympathize with them.^ The impartial spectator is a theory of conscience.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ This, of course, echoes Smith's moral theory in which the impartial spectator moderates the more extreme sentiments of moral agents.

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

^ Smith echoes these words throughout A Theory of Moral Sentiments .

• Adam Smith [Internet Encyclopedia of Philosophy] 19 January 2010 9:51 UTC www.utm.edu [Source type: Original source]

.Rather than viewing The Wealth of Nations and The Theory of Moral Sentiments as presenting incompatible views of human nature, most Smith scholars regard the works as emphasizing different aspects of human nature that vary depending on the situation.^ "'Less Abused than I had reason to Expect': The reception of The Wealth of Nations in Britain 1776-90."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Das AdamSmithProblem referred to only one of the numerous contradictions and puzzles in the Adam Smith saga: the big gap between the natural rights — laissez-faire views of his Theory of Moral Sentiments , and the much more qualified views of his later and decisively influential Wealth of Nations .

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ The theory of Hutcheson, that there exists in mankind an inward moral sense concerned with the direct perception of moral qualities in actions just as the sense of hearing or seeing is concerned with the direct perception of sounds or objects, or the theory of Shaftesbury that what we call conscience is a primary principle of human nature irresoluble into other facts, is very different from the theory of Adam Smith, who refers our moral perceptivity to the workings of the instinct of sympathy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.The Wealth of Nations draws on situations where man's morality is likely to play a smaller role—such as the laborer involved in pin-making—whereas The Theory of Moral Sentiments focuses on situations where man's morality is likely to play a dominant role among more personal exchanges.^ The moral sense theory cannot account for this fact; and the only explanation possible is, that, in this instance at least, the coincidence or opposition of sentiments between the person judging and the person judged constitutes moral approbation or the contrary.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ It was to have been an improvement on the work of Grotius on the same subject, and the Theory of Moral Sentiments concludes with a promise which, unfortunately, was never fulfilled.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ This part of the theory may claim, therefore, not only to be as good as any other theory, but to be in strict keeping with the vast amount of variable moral sentiment which actually exists in the world.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.An Inquiry into the Nature and Causes of the Wealth of Nations expounds that the free market, while appearing chaotic and unrestrained, is actually guided to produce the right amount and variety of goods by a so-called "invisible hand".^[56] Smith opposed any form of economic concentration because it distorts the market's natural ability to establish a price that provides a fair return on land, labor, and capital.^ In "An Inquiry Into the Nature and Causes of the Wealth of Nations," Smith explains how societies and individuals work through market mechanisms to build, accumulate and maintain capacity to generate their discretionary economic resources - and thus generate economic power.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ It is "net revenues" that are available for discretionary uses - either for investing or consuming - or for taxation that does not reach the level of capital levies - that is the measure of national wealth used by Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ Smith goes on at some length explaining that it is the productivity of the nation and not its wealth in money that is the ultimate source of economic power.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

.He advanced the idea that a market economy would produce a satisfactory outcome for both buyers and sellers, and would optimally allocate society's resources.^ On the contrary, as the Austrians would point out, both are the results of lower rates of time-preference in the society.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[60] .The image of the invisible hand was previously employed by Smith in The Theory of Moral Sentiments, but it has its original use in his essay, "The History of Astronomy". Smith believed that when an individual pursues his self-interest, he indirectly promotes the good of society: "by pursuing his own interest, [the individual] frequently promotes that of the society more effectually than when he intends to promote it."^ By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]
• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ "[In choosing between domestic and foreign sources], he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention."

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ He rarely frequents, and more rarely figures in, those convivial societies which are distinguished for the jollity and gaiety of their conversation.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[61] .Self-interested competition in the free market, he argued, would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services.^ In short, Smith knew full well that a low interest ceiling would not benefit marginal borrowers by providing them with cheap credit.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ But although this disposition to sympathize with the rich is conducive to the good order of society, Adam Smith admits that it to a certain extent tends to corrupt moral sentiments.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Neither would it save the theory to say that since A, for example, makes five times as much money as B, that A therefore benefits five times as much from 'society' and therefore should pay five times the taxes.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

Nevertheless, he was wary of businessmen and argued against the formation of monopolies.

.An often-quoted passage from The Wealth of Nations is: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest.^ It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ "'Less Abused than I had reason to Expect': The reception of The Wealth of Nations in Britain 1776-90."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Governments grant these monopolies against the interests of their own nation - and the interests of its people whose costs are thereby increased.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

.We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages."^ We address ourselves, not to their humanity, but to their self-love, and never talk to them of our own necessities but of their advantages.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ To the change produced upon them we join our own consciousness of that change, our own sense of the loss of the sunlight of human affections, and human memory, and then sympathize with their situation by so vividly imagining it our own.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ We imagine ourselves the impartial spectator of our own conduct, and according as we, from that situation, enter or not into the motives which influenced us, do we approve or condemn ourselves.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[62] Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it" as influenced by its scarcity. .Smith maintained that, with rent and profit, other costs besides wages also enter the price of a commodity.^ However, all taxes ultimately are paid from rent, profit or wages.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ He had earlier concluded that English labor had moved significantly above subsistence levels by maintaining its wage levels during the preceding century while overall costs - including that of corn - declined.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ After covering maintenance expenses, rent is the profits of land - wages the profits of labor - profits the profit of ownership capital - and interest the profits of debt capital.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^[63] .Other classical economists presented variations on Smith, termed the "labour theory of value". Classical economics focused on the tendency of markets to move to long-run equilibrium.^ The equilibrium price is the long-run tendency of the market price.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ For in this case, not only was Smith's theory of value a degeneration from his teacher Hutcheson and indeed from centuries of developed economic thought, but it was also a similar degeneration from Smith's own previous unpublished lectures.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ This is a labour theory of the proper origin of private property rather than a labour theory of value.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.Smith's advocacy of self-interest based economic exchange did not, however, preclude for him issues of fairness and justice.^ For, if it did so, a man could have no motive from self-interest for avoiding accidents which cannot but diminish his utility both to himself and society.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ However, payroll taxes on the emoluments of offices - the officials not being involved in competitive commerce - seem quite proper and economically inoffensive to Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

In Asia, Europeans "by different arts of oppression..have reduced the population of several of the Moluccas,"^[64] he wrote, while "the savage injustice of the Europeans" arriving in America, "rendered an event, which ought to have been beneficial to all, ruinous and destructive to several of those unfortunate countries."^[65] The Native Americans, "far from having ever injured the people of Europe, had received the first adventurers with every mark of kindness and hospitality." .However, "superiority of force" was "so great on the side of the Europeans, that they were enabled to commit with impunity every sort of injustice in those remote countries."^ "The resentment of mankind, however, runs so high against this crime, their terror for the man who shows himself capable of committing it is so great, that the mere attempt to commit it ought in all countries to be capital.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The palaces, gardens, or equipage of the great are objects of which the conveniency strikes every one; their utility is obvious; and we readily enjoy by sympathy the satisfaction they are fitted to afford.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ It is for this reason that some sort of esteem is attached to characters, however worthless, who have conducted with success a great warlike exploit, though under- taken contrary to every principle of justice, and.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[66]

.Smith also believed that a division of labour would effect a great increase in production.^ Driven by Calvinist hostility to luxurious consumption, Smith tried to skew the economy in favour of more 'productive labour' in capital investment and less in consumption.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Side by side and unintegrated with Smith's cost-of-production theory of the natural price lay his new quantity-of-labour-pain theory.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Smith, heavily influenced by the physiocrats, retained the unfortunate concept of 'productive' labour, but expanded it from agriculture to material goods in general.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

One example he used was the making of pins. .One worker could probably make only twenty pins per day.^ Smith had pointed to a small pin-factory where ten workers, each specializing in a different aspect of the work, could produce over 48,000 pins a day, whereas if each of these ten had made the entire pin on his own, they might not have made even one pin a day, and certainly not more than 20.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ "The government of the English colonies is perhaps the only one which, since the world began, could give perfect security to the inhabitants of so very distant a province."

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

.However, if ten people divided up the eighteen steps required to make a pin, they could make a combined amount of 48,000 pins in one day.^ Smith had pointed to a small pin-factory where ten workers, each specializing in a different aspect of the work, could produce over 48,000 pins a day, whereas if each of these ten had made the entire pin on his own, they might not have made even one pin a day, and certainly not more than 20.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.However, Smith's views on division of labour are not unambiguously positive, and are typically mis-characterized.^ Adam Smith also gave hostage to the later emergence of socialism by his repeatedly stated view that rent and profit are deductions from the produce of labour.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Smith instead took the egalitarian — environmentalist position, still dominant today in neoclassical economics, that all labourers are equal, and therefore that differences between them can only be the result rather than a cause of the system of the division of labour.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ It is appropriate to begin a discussion of Smith's Wealth of Nations with the division of labour, since Smith himself begins there and since for Smith this division had crucial and decisive importance.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[67] .On labor relations, Smith noted "severity" of laws against worker actions, and contrasted the masters' "clamour" against workers associations, with associations and collusions of the masters which "are never heard by the people" though such actions are "always" and "everywhere" taking place.^ "Though for want of such regulation the society should never acquire the proposed manufacture, it would not, upon that account, necessarily be the poorer in any one period of its duration."

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ In the first place, Smith retreated from the absolutist, natural law position that he had set forth in his ethical work, The Theory of Moral Sentiments (1757).

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Adam Smith offers several maxims to prevent taxation from becoming "much more burdensome to the people than they are beneficial to the sovereign."

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^[68]

.Shortly before his death, Smith had nearly all his manuscripts destroyed.^ But as, of all Adam Smith's critics, Jouffroy has been the one who has urged this argument with the greatest force, it will be best to follow his reasoning, before considering the force of the objection.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The destroyed manuscripts are supposed to have comprised the lectures on Rhetoric, read at Edinburgh forty-two years before, and the lectures on Natural Theology and on Jurisprudence, which formed part of his lectures at Glasgow.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ A few days before his death he ordered all his manuscripts to be burnt, with the exception of a few essays, which may still be read.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.In his last years, he seemed to have been planning two major treatises, one on the theory and history of law and one on the sciences and arts.^ Individuals may prefer, say, one unit of a consumption good now to two or even five units of the good next year.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ This letter seems to have led to a meeting between the two friends, the last before the sad final separation.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ What might be called this 'Whig theory of the history of science' has now been largely discarded for the far more realistic Kuhnian theory of paradigms.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.The posthumously published Essays on Philosophical Subjects, a history of astronomy down to Smith's own era, plus some thoughts on ancient physics and metaphysics, probably contain parts of what would have been the latter treatise.^ The difficulties that Great Britain was having in finding an effective way to get the colonies to pay for some of the expenses of their own defense is set forth at some length by Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ By reference to his own experience, every reader may easily test for himself the truth or falsity of Adam Smith's argument upon this subject.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The longest and perhaps the most interesting division of Adam Smith's treatise is that in which he reviews the relation of his own theory to that of other systems of moral philosophy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.Lectures on Jurisprudence were notes taken from Smith's early lectures, plus an early draft of The Wealth of Nations, published as part of the 1976 Glasgow Edition of the works and correspondence of Smith.^ Adam Smith and the Wealth of Nations : Bicentennial Essays 1776-1976 .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Indeed, we have noted a similar fatal deterioration in his value theory from the time of the Lectures to the Wealth of Nations.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ It is "net revenues" that are available for discretionary uses - either for investing or consuming - or for taxation that does not reach the level of capital levies - that is the measure of national wealth used by Smith.

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

.Other works, including some published posthumously, include Lectures on Justice, Police, Revenue, and Arms (1763) (first published in 1896); A Treatise on Public Opulence (1764) (first published in 1937); and Essays on Philosophical Subjects (1795).^ It would, in all cases, be for the interest of the society to replace this revenue to the crown by some other equal revenue, and to divide the lands among the people, which could not well be done better, perhaps, than by exposing them to public sale."

• Adam Smith, The Wealth of Nations 1 February 2010 6:54 UTC www.futurecasts.com [Source type: Original source]

^ Public works — including highways, bridges and harbours, on the rationale that private enterprise would not 'have the incentive' to maintain them properly(!?

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ This concept, similar to Cantillon's 'intrinsic value' or Hutcheson's 'fundamental value', had appeared in the lectures, but occupied a minor role as it did in the work of these other economists.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.The Wealth of Nations, one of the earliest attempts to study the rise of industry and commercial development in Europe, was a precursor to the modern academic discipline of economics.^ In the Wealth of Nations the theory of money resides at a relative nadir in the swings of its long historical development.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Indeed, 'scarcity' — that concept so fundamental and crucial to economic theory plays virtually no role in the Wealth of Nations.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Yet, as Jacob Viner put it, 'One of the mysteries of the history of economic thought' is that Adam Smith, though a close friend of Hume for many years, included none of the Humean analysis in his Wealth of Nations .

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.In this and other works, Smith expounded how rational self-interest and competition can lead to economic prosperity and well-being.^ The two years after the publication of his greatest work Adam Smith spent in London, in the midst of that literary society which we know so well through the pages of Boswell.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The longest and perhaps the most interesting division of Adam Smith's treatise is that in which he reviews the relation of his own theory to that of other systems of moral philosophy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Similar pursuits in government by no means lead to the same harmonious and happy result, Smith being alive to the pernicious consequences of government's creation of monopolies and its conferring privileges on special interest groups.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.It also provided one of the best-known intellectual rationales for free trade and capitalism, greatly influencing the writings of later economists.^ The French economist Charles Rist is justly highly critical of the dead stock approach and its influence on later generations: .

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ In addition, Smith failed to apply his analysis of the division of labour to international trade, where it would have provided powerful ammunition for his own free trade policies.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Among Smith's contemporaries, Gibbon is well-known for the care with which he provided references and the same is true of the best-known agricultural writer of Smith's day, Arthur Young.'

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.Smith is often cited as the father of modern economics.^ As we have already seen, Smith was scarcely the founder of economic science, a science which existed since the medieval scholastics and, in its modern form, since Richard Cantillon.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Bloomfield's apologia for Smith follows Eagly, adding encomiums to Smith's alleged modernity in anticipating Mundellian, neo-monetarist equilibrium economics.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Adam Smith and Modern Economics: From market Behavior to Public Choice.

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[69][70][71] .Smith was controversial in his own day and his general approach and writing style was often satirized by Tory writers in the moralizing tradition of Hogarth and Swift, as a discussion at the University of Winchester suggests.^ The various objections raised by these writers, all of whom have approached it with that impartial acuteness so characteristic of philosophers in regard to theories not their own, will best serve to illustrate what have been considered the weak points in the general theory proposed by Adam Smith.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The longest and perhaps the most interesting division of Adam Smith's treatise is that in which he reviews the relation of his own theory to that of other systems of moral philosophy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Among Smith's contemporaries, Gibbon is well-known for the care with which he provided references and the same is true of the best-known agricultural writer of Smith's day, Arthur Young.'

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^[72]

.George Stigler attributes to Smith the central proposition of mainstream economic theory, namely that an individual will invest a resource, for example, land or labour, so as to earn the highest possible return on it.^ Smith indicates that the capitalist (the 'undertaker') reaps profits in return for the risk, and for interest on the investment for maintaining the workers until the product is sold — so that the capitalist earns profit for important functions.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Labour receives wages, land earns rent, and capital earns 'profits' — actually long-run rather than short-run rates of return, or what might be called the 'natural' rate of interest.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ Furthermore, as we have indicated, he attributes rent to the 'powers of nature', which supposedly earns an extra return in agriculture as compared to other occupations.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

.Consequently, all uses of the resource should yield a risk-adjusted equal rate of return; otherwise resource reallocation would result.^ The implication of that point would be that both persons, and therefore all persons, should pay an equal tax, that is, a tax equal in absolute numbers.

• The Celebrated Adam Smith 1 February 2010 6:54 UTC mises.org [Source type: Original source]

^ The eye, having been used to associate a certain ornamentation with a certain order, would be offended at missing their conjunction; but it is inconceivable that, prior to established custom, five hundred other forms should not have suited those proportions equally well.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ In either case her feeling would be a result of all the complex surroundings of her life, which is meant by education in its broadest sense.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.On the other hand, Joseph Schumpeter dismissed Smith's contributions as unoriginal, saying "His very limitation made for success.^ Adam Smith says expressly indeed, that there is no other measure of moral conduct than the sympathetic approbation of each individual.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The success or failure of our undertakings must very much depend on the good or bad opinion entertained of us, and on the general disposition of others to assist or oppose us.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

Had he been more brilliant, he would not have been taken so seriously. Had he dug more deeply, had he unearthed more recondite truth, had he used more difficult and ingenious methods, he would not have been understood. .But he had no such ambitions; in fact he disliked whatever went beyond plain common sense.^ To call the fact of moral approbation by such terms was simply to give it other names; and to say that our conscience or moral sense admitted of no analysis was equivalent to saying that our moral sentiments admitted of no explanation.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ There must be the same sympathy in the case of the humblest action we denominate right as in that of the most glorious action; yet such actions often excite no sympathy whatever.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

He never moved above the heads of even the dullest readers. .He led them on gently, encouraging them by trivialities and homely observations, making them feel comfortable all along.” (Schumpeter History of Economic Analysis.^ It is the opposite consciousness which makes all the misery of poverty; the feeling of being placed away from the sight or notice of mankind, the feeling that a man's misery is also disagreeable to others.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ A History of Economic Analysis .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

New York: Oxford University Press, p 185)

.Classical economists presented variations on Smith, termed the "labour theory of value", later Marxian economics descends from classical economics also using Smith's labour theories in part.^ This part of the theory may claim, therefore, not only to be as good as any other theory, but to be in strict keeping with the vast amount of variable moral sentiment which actually exists in the world.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Part VII., or Systems of Moral Philosophy, helps in the thirteenth chapter to throw into clear light the relation of Adam Smith's theory to other theories of moral philosophy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Perhaps the part of Adam Smith's theory which has given least satisfaction is his account of the ethical standard, or measure of moral actions.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.The first volume of Karl Marx's major work, Capital, was published in German in 1867. In it, Marx focused on the labour theory of value and what he considered to be the exploitation of labour by capital.^ Rosenbluth, G. "A Note on Labour, Wages, and Rent in Smith's Theory of Value."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[73][74] The labour theory of value held that the value of a thing was determined by the labor that went into its production. This contrasts with the modern understanding of mainstream economics, that the value of a thing is determined by what one is willing to give up to obtain the thing. .Smith is often cited not only as the conceptual builder of free markets in capitalism but also as a main contributor to communist theory, via his influence on Marx.^ It appears then in Adam Smith's theory, that the element of morality in actions only really arises from reference to their tendency.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The first three Parts exhaust the main theory, or that doctrine of Sympathy, which is Adam Smith's own special creation, and on which his rank as a moral philosopher depends; the other four Parts having only to do with it incidentally or by accident.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ This became therefore, one of the favourite topics of speculation; but it is only necessary to notice Hume's treatment of it, inasmuch as it supplies the first principle of Adam Smith's theory.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.A body of theory later termed "neoclassical economics" or "marginalism" formed from about 1870 to 1910. The term "economics" was popularized by such neoclassical economists as Alfred Marshall as a concise synonym for "economic science" and a substitute for the earlier, broader term "political economy" used by Smith.^ Studies in the History of Economic theory Before 1870.

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ The word "association" is never once used by Adam Smith, but it is implied at every step of his theory, and forms really as fundamental a feature in his reasoning as it does in that of the philosopher who was the first to investigate its laws in their application to the facts of morality.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The result of this Epicurean theory of life on Adam Smith was, fortunately for the world, a strong preference for the life of learning and literature over the professional or political life.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[75][76] This corresponded to the influence on the subject of mathematical methods used in the natural sciences.^[77] Neoclassical economics systematized supply and demand as joint determinants of price and quantity in market equilibrium, affecting both the allocation of output and the distribution of income. .It dispensed with the labour theory of value of which Smith was most famously identified with in classical economics, in favour of a marginal utility theory of value on the demand side and a more general theory of costs on the supply side.^ Yet there is nothing Adam Smith resented more strongly than any identification of his theory with the selfish system of morality.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The feeling of moral approbation is therefore much more complex than it is in Adam Smith's theory.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Closely connected in Adam Smith's theory with his account of the growth of conscience is his account of the growth of those general moral principles we find current in the World.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[78]

.The bicentennial anniversary of the publication of The Wealth of Nations was celebrated in 1976, resulting in increased interest for The Theory of Moral Sentiments and his other works throughout academia.^ Adam Smith and the Wealth of Nations : Bicentennial Essays 1776-1976 .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ It was to have been an improvement on the work of Grotius on the same subject, and the Theory of Moral Sentiments concludes with a promise which, unfortunately, was never fulfilled.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ This part of the theory may claim, therefore, not only to be as good as any other theory, but to be in strict keeping with the vast amount of variable moral sentiment which actually exists in the world.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.After 1976, Smith was more likely to be represented as the author of both The Wealth of Nations and The Theory of Moral Sentiments, and thereby as the founder of a moral philosophy and the science of economics.^ Adam Smith and the Wealth of Nations : Bicentennial Essays 1776-1976 .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Yet there is nothing Adam Smith resented more strongly than any identification of his theory with the selfish system of morality.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ This idea of a Moral Sense as the source and standard of our moral sentiments was so far developed by Hutcheson, that time Moral Sense theory of ethics had been more generally connected with his name than with that of its real originator.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

His homo economicus or "economic man" was also more often represented as a moral person. Additionally, his opposition to slavery, colonialism, and empire was emphasized, as were his statements about high wages for the poor, and his views that a common street porter was not intellectually inferior to a philosopher.^[79]

.Smith has been commemorated in the UK on banknotes printed by two different banks; his portrait has appeared since 1981 on the £50 notes issued by the Clydesdale Bank in Scotland,^[80][81] and in March 2007 Smith's image also appeared on the new series of £20 notes issued by the Bank of England, making him the first Scotsman to feature on an English banknote.^ Fortune seems to have favoured him in making such a course possible, for after leaving Oxford he spent two years at home with his mother at Kirkaldy.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[82]

A large-scale memorial of Smith was unveiled on 4 July 2008 in Edinburgh. It is a 10 feet (3.0 m)-tall bronze sculpture and it stands above the Royal Mile outside St Giles' Cathedral in Parliament Square, near the Mercat cross.^[83] .20th century sculptor Jim Sanborn (best known for creating the Kryptos sculpture at the United States Central Intelligence Agency) has created multiple pieces which feature Smith's work.^ In The University in Society: Europe, Scotland and the United States from the 16th to the 20th Century .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

At Central Connecticut State University is Circulating Capital, a tall cylinder which features an extract from The Wealth of Nations on the lower half, and on the upper half, some of the same text but represented in binary code.^[84] At the University of North Carolina at Charlotte, outside the Belk College of Business Administration, is Adam Smith's Spinning Top.^[85][86] .Another Smith sculpture is at Cleveland State University.^ Adam Smith and the Role of the State Glascow: University of Glascow Press, 1974.

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[87]

.Smith has been celebrated by advocates of free market policies as the founder of free market economics, a view reflected in the naming of bodies such as the Adam Smith Institute, Adam Smith Society^[88] and the Australian Adam Smith Club,^[89] and in terms such as the Adam Smith necktie.^ But although this disposition to sympathize with the rich is conducive to the good order of society, Adam Smith admits that it to a certain extent tends to corrupt moral sentiments.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Habit and experience, says Adam Smith, teach us so easily and so readily to view our own interests and those of others from the standpoint of a third person, that "we are scarce sensible" of such a process at all.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The two years after the publication of his greatest work Adam Smith spent in London, in the midst of that literary society which we know so well through the pages of Boswell.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[90]

Alan Greenspan argues that, while Smith did not coin the term laissez-faire, "it was left to Adam Smith to identify the more-general set of principles that brought conceptual clarity to the seeming chaos of market transactions". Greenspan continues that The Wealth of Nations was "one of the great achievements in human intellectual history".^[91] P. J. O'Rourke describes Smith as the "founder of free market economics".^[92]

However, other writers have argued that Smith's support for laissez-faire (which in French means leave alone) has been overstated. .Herbert Stein wrote that the people who "wear an Adam Smith necktie" do it to "make a statement of their devotion to the idea of free markets and limited government", and that this misrepresents Smith's ideas.^ To this extent, therefore, Adam Smith seems to agree with the utilitarianism of Paley in making the happiness of another world the ultimate motive for virtuous action in this.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ But as, of all Adam Smith's critics, Jouffroy has been the one who has urged this argument with the greatest force, it will be best to follow his reasoning, before considering the force of the objection.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Such are the physical and instinctive facts of sympathy upon which Adam Smith founds his theory of the origin of moral approbation and our moral ideas.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

Stein writes that Smith "was not pure or doctrinaire about this idea. He viewed government intervention in the market with great skepticism ... yet he was prepared to accept or propose qualifications to that policy in the specific cases where he judged that their net effect would be beneficial and would not undermine the basically free character of the system. .He did not wear the Adam Smith necktie."^ Her death, which did not long precede his own, closed a life of unremitted affection on both sides, and was the first and greatest bereavement that Adam Smith ever had to mourn.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

In Stein's reading, The Wealth of Nations could justify the Food and Drug Administration, the Consumer Product Safety Commission, mandatory employer health benefits, environmentalism, and "discriminatory taxation to deter improper or luxurious behavior".^[93]

Similarly, Vivienne Brown stated in The Economic Journal that in the 20th century United States, Reaganomics supporters, The Wall Street Journal, and other similar sources have spread among the general public a partial and misleading vision of Smith, portraying him as an "extreme dogmatic defender of laissez-faire capitalism and supply-side economics".^[94] In fact, The Wealth of Nations includes the following statement on the payment of taxes: "The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state."^[95]

Smith even specifically named taxes that he thought should be required by the state among them luxury goods taxes and tax on rent. He believed that tax laws should be as transparent as possible and that each individual should pay a "certain amount, and not arbitrary," in addition to paying this tax at the time "most likely to be convenient for the contributor to pay it".^[96]

Additionally, Smith outlined the proper expenses of the government in The Wealth of Nations, Book V, Ch. I. .Included in his requirements of a government is to enforce contracts and provide justice system, grant patents and copy writes, provide public goods such as infrastructure, provide national defense and regulate banking.^ On the subject of Justice, it was his intention to write a system of natural jurisprudence, "or a theory of the general principles which ought to run through and be the foundation of the laws of all nations."

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Wedderburne and I made presents of our copies to such of our acquaintances as we thought good judges, and proper to spread the reputation of the book.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

.It was the role of the government to provide goods "of such a nature that the profit could never repay the expense to any individual" such as roads, bridges, canals, and harbours.^ The principle of self-love could never be virtuous in any degree, and it was merely innocent, not good, when it led a man to act from a reasonable regard to his own happiness.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

He also encouraged invention and new ideas through his patent enforcement and support of infant industry monopolies. he supported public education and religious institutions as providing general benefit to the society. Finally he outlined how the government should support the dignity of the monarch or chief magistrate, such that they are equal or above the public in fashion. .He even states that monarchs should be provided for in a greater fashion than magistrates of a republic because "we naturally expect more splendor in the court of a king than in the mansion-house of a doge."^ It is only because of the greater permanence of their fashion, which prevents our having much experience of any change in them, that makes it less easy for us to recognize that the rules we think ought to be observed in each of the fine arts are no more founded on reason and the nature of things than they are in the matter of our furniture and dress.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ The tendency to reverence them is so natural, that even when a people are brought to desire the punishment of their kings, the sorrow felt for the mortification of a monarch is ever ready to revive former sentiments, of loyalty.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ We are, Adam Smith thinks, naturally disposed to sympathize more with our neighbours' small joys than with their great ones, and more with their great sorrows than with their small ones.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^[97] In addition, he was in favor of retaliatory tariffs and believed that they would eventually bring down the price of goods. .He even stated in Wealth of Nations, "The recovery of a great foreign market will generally more than compensate the transitory inconvenience of paying dearer during a short time for some sorts of goods."^ "'Less Abused than I had reason to Expect': The reception of The Wealth of Nations in Britain 1776-90."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ In such times, the leaders of the discontented party often propose "to new-model the constitution, and to alter, in some of its most essential parts, that system of government under which the subjects of a great empire have enjoyed perhaps peace, security, and even glory, during the course of several centuries together."

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Note the market comp for managers or executives might be more than you want to pay if you're a first time entrepreneur.

• blog.adamsmith.cc 19 January 2010 9:51 UTC blog.adamsmith.cc [Source type: General]

^[98]

Noam Chomsky has argued^{[N 3]} that several aspects of Smith's thought have been misrepresented and falsified by contemporary ideology, including Smith’s reasons for supporting markets and Smith’s views on corporations. .Chomsky argues that Smith supported markets in the belief that they would lead to equality, and that Smith opposed wage labor and corporations.^ Lewis, Thomas J. "Adam Smith: The Labor Market as the Basis of Natural Right."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Miller, William L. "Adam Smith on Wage Differentials Against Agricultural Laborers."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[99] .Economic historians such as Jacob Viner regard Smith as a strong advocate of free markets and limited government (what Smith called "natural liberty") but not as a dogmatic supporter of laissez-faire.^ "Adam Smith and Laissez-Faire."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Freeman, R.D. "Adam Smith, Education and Laissez-Faire."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ "Free Trade and the Economic Limits to National Politics: Neo-Machiavellian Political Economy Reconsidered."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[100]

.Economist Daniel Klein believes using the term "free market economics" or "free market economist" to identify the ideas of Smith is too general and slightly misleading.^ It is also necessary to remember that Adam Smith carefully restricted the feeling of obligation to the one single virtue of justice, and throughout his treatise avoided generally the use of words which, like "right" and "wrong," seem to suggest the idea of obligation.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ Adam Smith and Modern Economics: From market Behavior to Public Choice.

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Willis, K. "The Role of Parliament of the Economic Ideas of Adam Smith, 1776-1800."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

.Klein offers six characteristics central to the identity of Smith's economic thought and argues that a new name is needed to give a more accurate depiction of the "Smithian" identity.^ As the following bibliography indicates, the literature on Smith's moral, economic, and political thought is massive.

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Smith, Marx, After: Ten Essays in the Development of Economic Thought .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^ Teichgraeber, Richard F., III. Review of Maurice Brown's Adam Smith's Economics: Its Place in the Development of Economic Thought .

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[101][102] Economist David Ricardo set straight some of the misunderstandings about Smith’s thoughts on free market. Most people still fall victim to the thinking that Smith was a free market economist without exception, though he was not. Ricardo pointed out that Smith was in support of helping infant industries. Smith believed that the government should subsidise newly formed industry, but he did fear that when the infant industry grew into adulthood it would be unwilling to surrender the government help.^[103] Smith also supported tariffs on imported goods to counteract an internal tax on the same good. .Smith also fell to pressure in supporting some tariffs in support for national defense.^ According to Adam Smith, there was again some truth in each of these theories, but they each fell short of that completeness of explanation which was the merit of his own peculiar system.

• http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/smith/farrer.html 1 February 2010 6:54 UTC socserv2.mcmaster.ca [Source type: Original source]

^ B. Adam Ferguson, Adam Smith,and the Problem of the National Defense."

• Top Page 5 1 February 2010 6:54 UTC www.utdallas.edu [Source type: Academic]

^[103]