Adam Smith

Adam Smith (5 June 1723 OS (16 June 1723 NS) – 17 July 1790) was a Scottish moral philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment,[1]  Smith is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Smith is cited as the "father of modern economics" and is still among the most influential thinkers in the field of economics today.[2]

Smith studied social philosophy at the University of Glasgow and at Balliol College, Oxford, where he was one of the first students to benefit from scholarships set up by fellow Scot, John Snell. After graduating, he delivered a successful series of public lectures at the University of Edinburgh, leading him to collaborate with David Hume during the Scottish Enlightenment. Smith obtained a professorship at Glasgow teaching moral philosophy, and during this time he wrote and published The Theory of Moral Sentiments. 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. Smith laid the foundations of classical free market economic theory. The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, he expounded upon how rational self-interest and competition can lead to economic prosperity. Smith was controversial in his own day and his general approach and writing style were often satirised by Tory writers in the moralising tradition ofWilliam Hogarth and Jonathan Swift. In 2005, The Wealth of Nations was named among the 100 Best Scottish Books of all time.[3]  Former UK Prime Minister Margaret Thatcher, it is said, used to carry a copy of the book in her handbag.[4]



Contents
[hide]  *1 Biography  ==Biography[ edit] == ===Early life[ edit] === Portrait of Smith's mother, Margaret DouglasSmith was born in Kirkcaldy, in the County of Fife, in Scotland. His father, also of the same name, was a Scottish Writer to the Signet (seniorsolicitor), advocate, and prosecutor (Judge Advocate) and also served as comptroller of the Customs in Kirkcaldy.[5]  In 1720 he married Margaret Douglas, daughter of the landed Robert Douglas of Strathendry, also in Fife. His father died two months after he was born, leaving his mother a widow.<sup class="reference" id="cite_ref-6" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[6]  The date of Smith's baptism into the Church of Scotland at Kirkcaldy was 5 June 1723,<sup class="reference" id="cite_ref-7" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[7]  and this has often been treated as if it were also his date of birth,<sup class="reference" id="cite_ref-rae_1895_1_5-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[5]  which is unknown. Although few events in Smith's early childhood are known, the Scottish journalist John Rae, Smith's biographer, recorded that Smith was abducted by gypsies at the age of three and released when others went to rescue him.<sup class="reference" id="cite_ref-9" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[N 1]  Smith was close to his mother, who probably encouraged him to pursue his scholarly ambitions.<sup class="reference" id="cite_ref-Bussing-Burks_2003_39_10-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[9]  He attended the Burgh School of Kirkcaldy—characterised by Rae as "one of the best secondary schools of Scotland at that period"<sup class="reference" id="cite_ref-rae_1895_5_8-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[8] —from 1729 to 1737, he learned Latin, mathematics, history, and writing.<sup class="reference" id="cite_ref-Bussing-Burks_2003_39_10-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[9] ===Formal education<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === A commemorative plaque for Smith is located in Smith's home town of Kirkcaldy.<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith entered the University of Glasgow when he was fourteen and studied moral philosophy under Francis Hutcheson.<sup class="reference" id="cite_ref-Bussing-Burks_2003_39_10-2" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[9]  Here, Smith developed his passion for liberty, reason, and free speech. In 1740 Smith was the graduate scholar presented to undertake postgraduate studies at Balliol College, Oxford, under the Snell Exhibition.<sup class="reference" id="cite_ref-11" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[10]
 * 1.1 Early life
 * 1.2 Formal education
 * 1.3 Teaching career
 * 1.4 Tutoring and travels
 * 1.5 Later years
 * 2 Personality and beliefs
 * 2.1 Character
 * 2.2 Religious views
 * 3 Published works
 * 3.1 The Theory of Moral Sentiments
 * 3.2 The Wealth of Nations
 * 3.3 Criticism and dissent
 * 3.4 Other works
 * 4 Legacy
 * 4.1 In economics and moral philosophy
 * 4.2 Portraits, monuments, and banknotes
 * 4.3 Residence
 * 4.4 As a symbol of free market economics
 * 5 See also
 * 6 Footnotes
 * 7 Notes
 * 8 References
 * 9 Further reading
 * 10 External links

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Adam Smith considered the teaching at Glasgow to be far superior to that at Oxford, which he found intellectually stifling.<sup class="reference" id="cite_ref-Bussing-Burks_2003_41_12-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[11]  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." 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.<sup class="reference" id="cite_ref-rae_1895_5_8-2" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[8] <sup class="reference" id="cite_ref-rae_1895_24_13-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[12] <sup class="reference" id="cite_ref-Buchholz_1999_12_14-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[13]  According to William Robert Scott, "The Oxford of [Smith's] time gave little if any help towards what was to be his lifework."<sup class="reference" id="cite_ref-15" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[14]  Nevertheless, Smith took the opportunity while at Oxford to teach himself several subjects by reading many books from the shelves of the large Bodleian Library.<sup class="reference" id="cite_ref-rae_1895_22_16-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[15]  When Smith was not studying on his own, his time at Oxford was not a happy one, according to his letters.<sup class="reference" id="cite_ref-rae_1895_24.E2.80.9325_17-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[16]  Near the end of his time there, Smith began suffering from shaking fits, probably the symptoms of a nervous breakdown.<sup class="reference" id="cite_ref-Bussing-Burks_2003_42_18-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[17]  He left Oxford University in 1746, before his scholarship ended.<sup class="reference" id="cite_ref-Bussing-Burks_2003_42_18-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[17] <sup class="reference" id="cite_ref-19" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[18]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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. 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.<sup class="reference" id="cite_ref-Buchholz_1999_12_14-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[13]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Adam Smith's discontent at Oxford might be in part due to the absence of his beloved teacher in Glasgow, Francis Hutcheson. Hutcheson was well regarded as one of the most prominent lecturers at the University of Glasgow in his day and earned the approbation of students, colleagues, and even ordinary residents with the fervor and earnestness of his orations (which he sometimes opened to the public). His lectures endeavoured not merely to teach philosophy but to make his students embody that philosophy in their lives, appropriately acquiring the epithet, the preacher of philosophy. Unlike Smith, Hutcheson was not a system builder; rather it was his magnetic personality and method of lecturing that so influenced his students and caused the greatest of those to reverentially refer to him as "the never to be forgotten Hutcheson" – a title that Smith in all his correspondence used to describe only two people, his good friend David Hume and influential mentor Francis Hutcheson.<sup class="reference" id="cite_ref-20" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[19] ===Teaching career<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith began delivering public lectures in 1748 in University of Edinburgh, sponsored by the Philosophical Society of Edinburgh under the patronage of Lord Kames.<sup class="reference" id="cite_ref-rae_1895_30_21-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[20] His lecture topics included rhetoric and belles-lettres,<sup class="reference" id="cite_ref-22" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[21]  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.<sup class="reference" id="cite_ref-Bussing-Burks_2003_43_23-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[22]

David Hume was a friend and contemporary of Smith.<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">In 1750, he met the philosopher David Hume, who was his senior by more than a decade. 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.<sup class="reference" id="cite_ref-24" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[23]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">In 1751, Smith earned a professorship at Glasgow University teaching logic courses, and in 1752 Smith was elected a member of the Philosophical Society of Edinburgh, having been introduced to the society by Lord Kames. When the head of Moral Philosophy died the next year, Smith took over the position.<sup class="reference" id="cite_ref-Bussing-Burks_2003_43_23-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[22]  He worked as an academic for the next thirteen years, which he characterised as "by far the most useful and therefore by far the happiest and most honorable period [of his life]".<sup class="reference" id="cite_ref-rae_1895_42_25-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[24]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith published The Theory of Moral Sentiments in 1759, embodying some of his Glasgow lectures. This work was concerned with how human morality depends on sympathy between agent and spectator, or the individual and other members of society. Smith defined "mutual sympathy" as the basis of moral sentiments. He based 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 mutual sympathy, a term best captured in modern parlance by the twentieth-century concept of empathy, the capacity to recognise feelings that are being experienced by another being.

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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.<sup class="reference" id="cite_ref-autogenerated1_26-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[25]  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.<sup class="reference" id="cite_ref-27" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[26]  For example, Smith lectured that the cause of increase in national wealth is labour, rather than the nation's quantity of gold or silver, which is the basis for mercantilism, the economic theory that dominated Western European economic policies at the time.<sup class="reference" id="cite_ref-autogenerated1_26-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[25]

François Quesnay, one of the leaders of thePhysiocratic school of thought<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">In 1762, the University of Glasgow conferred on Smith the title of Doctor of Laws (LL.D.). At the end of 1763, he obtained an offer fromCharles Townshend – who had been introduced to Smith by David Hume – to tutor his stepson, Henry Scott, the young Duke of Buccleuch. Smith then resigned from his professorship to take the tutoring position. He subsequently attempted to return the fees he had collected from his students because he resigned in the middle of the term, but his students refused.<sup class="reference" id="cite_ref-Buchholz_1999_16_28-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[27] ===Tutoring and travels<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith's tutoring job entailed touring Europe with Scott, during which time he educated Scott on a variety of subjects – such as proper Polish.<sup class="reference" id="cite_ref-Buchholz_1999_16_28-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[27]  He was paid £300 per year (plus expenses) along with a £300 per year pension; roughly twice his former income as a teacher.<sup class="reference" id="cite_ref-Buchholz_1999_16_28-2" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[27]  Smith first travelled as a tutor to Toulouse, France, where he stayed for one and a half years.<sup class="reference" id="cite_ref-Buchholz_1999_16_28-3" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[27]  According to his own account, he found Toulouse to be somewhat boring, having written to Hume that he "had begun to write a book to pass away the time".<sup class="reference" id="cite_ref-Buchholz_1999_16_28-4" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[27]  After touring the south of France, the group moved to Geneva, where Smith met with the philosopher Voltaire.<sup class="reference" id="cite_ref-29" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[28]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">From Geneva, the party moved to Paris. Here Smith came to know several great intellectual leaders of the time; invariably having an effect on his future works. This list included: Benjamin Franklin,<sup class="reference" id="cite_ref-Buchholz_17_30-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[29]  Turgot, Jean D'Alembert, André Morellet, Helvétius, and, notably,François Quesnay, the head of the Physiocratic school.<sup class="reference" id="cite_ref-31" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[30]  So impressed with his ideas<sup class="reference" id="cite_ref-32" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[31]  Smith considered dedicating The Wealth of Nations to him – had Quesnay not died beforehand.<sup class="reference" id="cite_ref-33" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[32]  Physiocrats were opposed to mercantilism, the dominating economic theory of the time. Illustrated in their mottoLaissez faire et laissez passer, le monde va de lui même! (Let do and let pass, the world goes on by itself!). They were also known to have declared that only agricultural activity produced real wealth; merchants and industrialists (manufacturers) did not.<sup class="reference" id="cite_ref-Buchholz_17_30-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[29]  This however, did not represent their true school of thought, but was a mere "smoke screen" manufactured to hide their actual criticisms of the nobility and church; arguing that they made up the only real clients of merchants.<sup class="reference" id="cite_ref-34" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[33]  The wealth of France was virtually destroyed by Louis XIV and Louis XV to ruinous wars,<sup class="reference" id="cite_ref-35" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[34]  by aiding the American insurgents against the British, and perhaps most destructive (in terms of public perceptions) was what was seen as the excessive consumption of goods and services deemed to have no economic contribution – unproductive labour. Assuming that nobility and church are essentially detractors from economic growth, the feudal system of agriculture in France was the only sector important to maintain the wealth of the nation. Given that the English economy of the day yielded an income distribution that stood in contrast to that which existed in France, Smith concluded that the teachings and beliefs of Physiocrats were, "with all [their] imperfections [perhaps], the nearest approximation to the truth that has yet been published upon the subject of political economy".<sup class="reference" id="cite_ref-36" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[35]  The distinction between productive versus unproductive labour – the physiocratic classe steril – was a predominant issue in the development and understanding of what would become classical economic theory. ===Later years<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">In 1766, Henry Scott's younger brother died in Paris, and Smith's tour as a tutor ended shortly thereafter.<sup class="reference" id="cite_ref-Buchholz_17_30-2" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[29]  Smith returned home that year to Kirkcaldy, and he devoted much of the next ten years to his magnum opus.<sup class="reference" id="cite_ref-37" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[36]  There he befriended Henry Moyes, a young blind man who showed precocious aptitude. As well as teaching Moyes, Smith secured the patronage of David Hume and Thomas Reid in the young man's education.<sup class="reference" id="cite_ref-38" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[37]  In May 1773, Smith was elected fellow of the Royal Society of London,<sup class="reference" id="cite_ref-39" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[38]  and was elected a member of the Literary Club in 1775.<sup class="reference" id="cite_ref-40" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[39]  The Wealth of Nations was published in 1776 and was an instant success, selling out its first edition in only six months.<sup class="reference" id="cite_ref-Buchholz_19_41-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[40]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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.<sup class="reference" id="cite_ref-42" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[41]  Five years later, as a member of the Philosophical Society of Edinburgh when it received its royal charter, he automatically became one of the founding members of theRoyal Society of Edinburgh,<sup class="reference" id="cite_ref-43" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[42]  and from 1787 to 1789 he occupied the honorary position of Lord Rector of the University of Glasgow.<sup class="reference" id="cite_ref-44" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[43]  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.<sup class="reference" id="cite_ref-45" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[44]  On his death bed, Smith expressed disappointment that he had not achieved more.<sup class="reference" id="cite_ref-Bussing-Burks_2003_53_46-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[45]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith's literary executors were two friends from the Scottish academic world: the physicist and chemist Joseph Black, and the pioneering geologist James Hutton.<sup class="reference" id="cite_ref-buchan_2006_25_47-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[46] Smith left behind many notes and some unpublished material, but gave instructions to destroy anything that was not fit for publication.<sup class="reference" id="cite_ref-buchan_2006_88_48-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[47]  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.<sup class="reference" id="cite_ref-buchan_2006_25_47-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[46]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith's library went by his will to David Douglas, Lord Reston (son of his cousin Colonel Robert Douglas of Strathendry, Fife), who lived with Smith. It was eventually divided between his two surviving children, Cecilia Margaret (Mrs. Cunningham) and David Anne (Mrs. Bannerman). On the death of her husband, the Rev. W. B. Cunningham of Prestonpans in 1878, Mrs. Cunningham sold some of the books. The remainder passed to her son, Professor Robert Oliver Cunningham of Queen's College, Belfast, who presented a part to the library of Queen's College. After his death the remaining books were sold. On the death of Mrs. Bannerman in 1879 her portion of the library went intact to the New College (of the Free Church), Edinburgh. ==Personality and beliefs<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;font-family:sans-serif;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] == ===Character<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === James Tassie's enamel paste medallion of Smith provided the model for many engravings and portraits that remain today.<sup class="reference" id="cite_ref-49" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:9.60000038146973px;">[48] <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Not much is known about Smith's personal views beyond what can be deduced from his published articles. His personal papers were destroyed after his death at his request.<sup class="reference" id="cite_ref-buchan_2006_88_48-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[47]  He never married,<sup class="reference" id="cite_ref-50" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[49]  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.<sup class="reference" id="cite_ref-51" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[50]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith was described by several of his contemporaries and biographers as comically absent-minded, with peculiar habits of speech and gait, and a smile of "inexpressible benignity".<sup class="reference" id="cite_ref-52" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[51]  He was known to talk to himself,<sup class="reference" id="cite_ref-Bussing-Burks_2003_53_46-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[45]  a habit that began during his childhood when he would smile in rapt conversation with invisible companions.<sup class="reference" id="cite_ref-skousen_2001_32_53-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[52]  He also had occasional spells of imaginary illness,<sup class="reference" id="cite_ref-Bussing-Burks_2003_53_46-2" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[45]  and he is reported to have had books and papers placed in tall stacks in his study.<sup class="reference" id="cite_ref-skousen_2001_32_53-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[52]  According to 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 needed help to escape.<sup class="reference" id="cite_ref-Buchholz_14_54-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[53]  He is also said to have put bread and butter into a teapot, drunk the concoction, and declared it to be the worst cup of tea he ever had. According to another account, Smith distractedly went out walking in his nightgown and ended up 15 miles (24 km) outside of town, before nearby church bells brought him back to reality.<sup class="reference" id="cite_ref-skousen_2001_32_53-2" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[52] <sup class="reference" id="cite_ref-Buchholz_14_54-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[53]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">James Boswell who was a student of Smith's at Glasgow University, and later knew him at the Literary Club, says that Smith thought that speaking about his ideas in conversation might reduce the sale of his books, and so his conversation was unimpressive. According to Boswell, he once told Sir Joshua Reynolds that 'he made it a rule when in company never to talk of what he understood'.<sup class="reference" id="cite_ref-55" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[54]

Portrait of Smith by John Kay, 1790<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith, who is reported to have been an odd-looking fellow, has been described as someone who "had a large nose, bulging eyes, a protruding lower lip, a nervous twitch, and a speech impediment".<sup class="reference" id="cite_ref-Buchholz_1999_12_14-2" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[13]  Smith is said to have acknowledged his looks at one point, saying, "I am a beau in nothing but my books."<sup class="reference" id="cite_ref-Buchholz_1999_12_14-3" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[13]  Smith rarely sat for portraits,<sup class="reference" id="cite_ref-56" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[55]  so almost all depictions of him created during his lifetime were drawn from memory. The best-known portraits of Smith are the profile by James Tassie and two etchings by John Kay.<sup class="reference" id="cite_ref-57" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[56]  The line engravings produced for the covers of 19th century reprints of The Wealth of Nations were based largely on Tassie's medallion.<sup class="reference" id="cite_ref-58" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[57] ===Religious views<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">There has been considerable scholarly debate about the nature of Smith's religious views. Smith's father had shown a strong interest in Christianity and belonged to the moderate wing of the Church of Scotland.<sup class="reference" id="cite_ref-59" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[58]  The fact that Adam Smith received the Snell Exhibition suggests that he may have gone to Oxford with the intention of pursuing a career in the Church of England.<sup class="reference" id="cite_ref-60" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[59]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Anglo-American economist Ronald Coase has challenged the view that Smith was a deist, based on the fact that Smith's writings never explicitly invoke God as an explanation of the harmonies of the natural or the human worlds.<sup class="reference" id="cite_ref-Coase_61-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[60]  According to Coase, though Smith does sometimes refer to the "Great Architect of the Universe", later scholars such as Jacob Viner have "very much exaggerated the extent to which Adam Smith was committed to a belief in a personal God",<sup class="reference" id="cite_ref-Coase-God_62-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[61]  a belief for which Coase finds little evidence in passages such as the one in the Wealth of Nations in which 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", and that "superstition first attempted to satisfy this curiosity, by referring all those wonderful appearances to the immediate agency of the gods. Philosophy afterwards endeavoured to account for them, from more familiar causes, or from such as mankind were better acquainted with than the agency of the gods".<sup class="reference" id="cite_ref-Coase-God_62-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[61]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Some other authors argue that Smith's social and economic philosophy is inherently theological and that his entire model of social order is logically dependent on the notion of God's action in nature.<sup class="reference" id="cite_ref-hidden_theology_63-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[62]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith was also a close friend and later the executor of David Hume, who was commonly characterised in his own time as an atheist.<sup class="reference" id="cite_ref-hume_on_religion_64-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[63]  The publication in 1777 of Smith's letter to William Strahan, in which he described Hume's courage in the face of death in spite his irreligiosity, attracted considerable controversy.<sup class="reference" id="cite_ref-65" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[64] ==Published works<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;font-family:sans-serif;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] == ===The Theory of Moral Sentiments<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === Main article: The Theory of Moral Sentiments<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">In 1759, Smith published his first work, The Theory of Moral Sentiments. He continued making extensive revisions to the book, up until his death.<sup class="reference" id="cite_ref-67" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[N 2]  Although The Wealth of Nations is widely regarded as Smith's most influential work, it is believed that Smith himself considered The Theory of Moral Sentiments to be a superior work.<sup class="reference" id="cite_ref-68" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[66]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">In the work, Smith critically examines the moral thinking of his time, and suggests that conscience arises from social relationships.<sup class="reference" id="cite_ref-69" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[67]  His goal in writing the work was to explain the source of mankind's ability to form moral judgements, in spite of man's natural inclinations towards self-interest. Smith proposes a theory of sympathy, in which the act of observing others makes people aware of themselves and the morality of their own behaviour.<sup class="reference" id="cite_ref-70" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[68]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Scholars have traditionally perceived a conflict between The Theory of Moral Sentiments and The Wealth of Nations; the former emphasises sympathy for others, while the latter focuses on the role of self-interest.<sup class="reference" id="cite_ref-71" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[69]  In recent years, however, some scholars<sup class="reference" id="cite_ref-72" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[70] <sup class="reference" id="cite_ref-73" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[71] <sup class="reference" id="cite_ref-74" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[72]  of Smith's work have argued that no contradiction exists.<sup class="reference" id="cite_ref-75" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[73]  They claim that 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 sympathise with them. Rather than viewing The Theory of Moral Sentiments and The Wealth of Nations as presenting incompatible views of human nature, some Smith scholars regard the works as emphasising different aspects of human nature that vary depending on the situation. Furthermore, Ekelund and Hebert argue that self-interest is present in both works and that "in the former, sympathy is the moral faculty that holds self-interest in check, whereas in the latter, competition is the economic faculty that restrains self-interest."<sup class="reference" id="cite_ref-76" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[74] ===The Wealth of Nations<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === Main article: The Wealth of NationsLater building on the site where Smith wrote The Wealth of Nations<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">There is a fundamental disagreement between classical and neoclassical economists about the central message of Smith's most influential work: An Inquiry into the Nature and Causes of the Wealth of Nations. Neoclassical economists emphasise Smith's invisible hand,<sup class="reference" id="cite_ref-77" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[75]  a concept mentioned in the middle of his work – Book IV, Chapter II – and classical economists believe that Smith stated his programme for promoting the "wealth of nations" in the first sentences.

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith used the term "the invisible hand" in "History of Astronomy"<sup class="reference" id="cite_ref-78" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[76]  referring to "the invisible hand of Jupiter" and twice – each time with a different meaning – the term "an invisible hand": in The Theory of Moral Sentiments<sup class="reference" id="cite_ref-79" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[77]  (1759) and in The Wealth of Nations<sup class="reference" id="cite_ref-80" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[78]  (1776). This last statement about "an invisible hand" has been interpreted as "the invisible hand" in numerous ways. It is therefore important to read the original: <p style="margin-top:0.5em;line-height:inherit;">As every individual, therefore, endeavours as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, 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. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. It is an affectation, indeed, not very common among merchants, and very few words need be employed in dissuading them from it. <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Those who regard that statement as Smith's central message also quote frequently Smith's dictum:<sup class="reference" id="cite_ref-81" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[79] <p style="margin-top:0.5em;line-height:inherit;">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. 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 first page of The Wealth of Nations, 1776 London edition<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith's statement about the benefits of "an invisible hand" is certainly meant to answer<sup class="noprint Inline-Template Template-Fact" style="line-height:1;font-size:11.1999998092651px;white-space:nowrap;">[citation needed]  Mandeville's contention that "Private Vices ... may be turned into Public Benefits".<sup class="reference" id="cite_ref-82" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[80]  It shows Smith's belief that when an individual pursues his self-interest, he indirectly promotes the good of society. 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. Nevertheless, he was wary of businessmen and warned of their "conspiracy against the public or in some other contrivance to raise prices".<sup class="reference" id="cite_ref-83" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[81]  Again and again, Smith warned of the collusive nature of business interests, which may form cabals or monopolies, fixing the highest price "which can be squeezed out of the buyers".<sup class="reference" id="cite_ref-84" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[82]  Smith also warned that a business-dominated political system would allow a conspiracy of businesses and industry against consumers, with the former scheming to influence politics and legislation. Smith states that the interest of manufacturers and merchants "...in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public...The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention."<sup class="reference" id="cite_ref-85" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[83]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">The neoclassical interest in Smith's statement about "an invisible hand" originates in the possibility to see it as a precursor ofneoclassical economics and its General Equilibrium concept. Samuelson's "Economics" refers 6 times to Smith's "invisible hand". To emphasise this relation, Samuelson<sup class="reference" id="cite_ref-86" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[84]  quotes Smith's "invisible hand" statement putting "general interest" where Smith wrote "public interest". Samuelson<sup class="reference" id="cite_ref-87" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[85]  concluded: "Smith was unable to prove the essence of his invisible-hand doctrine. Indeed, until the 1940s no one knew how to prove, even to state properly, the kernel of truth in this proposition about perfectly competitive market."

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Very differently, classical economists see in Smith's first sentences his programme to promote "The Wealth of Nations". Taking up the physiocratical concept of the economy as a circular process means that to have growth the inputs of period2 must excel the inputs of period1. Therefore the outputs of period1 not used or usable as input of period2 are regarded as unproductive labour as they do not contribute to growth. This is what Smith had learned in France with Quesnay. To this French insight that unproductive labour should be pushed back to use more labour productively, Smith added his own proposal, that productive labour should be made even more productive by deepening the division of labour. Deepening the division of labour means under competition lower prices and thereby extended markets. Extended markets and increased production lead to a new step of reorganising production and inventing new ways of producing which again lower prices, etc., etc.. Smith's central message is therefore that under dynamic competition a growth machine secures "The Wealth of Nations". It predicted England's evolution as the workshop of the World, underselling all its competitors. The opening sentences of the "Wealth of Nations" summarise this policy: <p style="margin-top:0.5em;line-height:inherit;">The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes ... . [T]his produce ... bears a greater or smaller proportion to the number of those who are to consume it ... .[B]ut this proportion must in every nation be regulated by two different circumstances;

===Criticism and dissent<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Alfred Marshall criticised Smith's definition of economy on several points. He argued that man should be equally important as money, services are as important as goods, and that there must be an emphasis on human welfare, instead of just wealth.
 * first, by the skill, dexterity, and judgment with which its labour is generally applied; and,
 * secondly, by the proportion between the number of those who are employed in useful labour, and that of those who are not so employed [emphasis added].<sup class="reference" id="cite_ref-88" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[86]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Nobel Prize-winning economist Joseph E. Stiglitz says, on the topic of one of Smith's better known ideas: "the reason that the invisible hand often seems invisible is that it is often not there."<sup class="reference" id="cite_ref-89" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[87] ===Other works<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === Smith's burial place inCanongate Kirkyard<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Shortly before his death, Smith had nearly all his manuscripts destroyed. 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. 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. 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. Other works, including some published posthumously, include Lectures on Justice, Police, Revenue, and Arms (1763) (first published in 1896); andEssays on Philosophical Subjects (1795).<sup class="reference" id="cite_ref-90" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[88] ==Legacy<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;font-family:sans-serif;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] == ===In economics and moral philosophy<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, Smith expounded how rational self-interest and competition can lead to economic prosperity. Smith was controversial in his own day and his general approach and writing style were often satirised by Tory writers in the moralising tradition of Hogarth and Swift, as a discussion at the University of Winchester suggests.<sup class="reference" id="cite_ref-91" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[89]  In 2005, The Wealth of Nations was named among the 100 Best Scottish Books of all time.<sup class="reference" id="cite_ref-100_Best_Scottish_Books.2C_Adam_Smith_3-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[3]  Former UK Prime Minister Margaret Thatcher, it is said, used to carry a copy of the book in her handbag.<sup class="reference" id="cite_ref-92" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[90]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">In light of the arguments put forward by Smith and other economic theorists in Britain, academic belief in mercantalism began to decline in England in the late 18th century. During the Industrial Revolution, Britain embraced free trade and Smith's laissez-faire economics, and via the British Empire, used its power to spread a broadly liberal economic model around the world, characterised by open markets, and relatively barrier free domestic and international trade.<sup class="reference" id="cite_ref-93" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[91]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">George Stigler attributes to Smith "the most important substantive proposition in all of economics". It is that, under competition, owners of resources (for example labour, land, and capital) will use them most profitably, resulting in an equal rate of return in equilibrium for all uses, adjusted for apparent differences arising from such factors as training, trust, hardship, and unemployment.<sup class="reference" id="cite_ref-94" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[92]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Paul Samuelson finds in Smith's pluralist use of supply and demand as applied to wages, rents, profit a valid and valuable anticipation of the general equilibriummodelling of Walras a century later. Smith's allowance for wage increases in the short and intermediate term from capital accumulation and invention contrasted with Malthus, Ricardo, and Karl Marx in their propounding a rigid subsistence–wage theory of labour supply.<sup class="reference" id="cite_ref-95" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[93]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">On the other hand, Joseph Schumpeter dismissed Smith's contributions as unoriginal, saying "His very limitation made for success. 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. 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."<sup class="reference" id="cite_ref-96" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[94]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Classical economists presented competing theories of those of Smith, termed the "labour theory of value". Later Marxian economics descending from classical economics also use Smith's labour theories, in part. 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.<sup class="reference" id="cite_ref-Roemer_97-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[95] <sup class="reference" id="cite_ref-98" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[96]  The labour theory of value held that the value of a thing was determined by the labour that went into its production. This contrasts with the modern contention of neoclassical economics, that the value of a thing is determined by what one is willing to give up to obtain the thing.

The Adam Smith Theatre inKirkcaldy<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">The body of theory later termed "neoclassical economics" or "marginalism" formed from about 1870 to 1910. The term "economics" was popularised 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.<sup class="reference" id="cite_ref-99" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[97] <sup class="reference" id="cite_ref-100" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[98]  This corresponded to the influence on the subject of mathematical methods used in the natural sciences.<sup class="reference" id="cite_ref-Clark_101-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[99]  Neoclassical economics systematised 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.<sup class="reference" id="cite_ref-102" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[100]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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. 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. His homo economicus or "economic man" was also more often represented as a moral person. Additionally, economists David Levy and Sandra Peart in "The Secret History of the Dismal Science" point to his opposition to hierarchy and beliefs in inequality, including racial inequality, and provide additional support for those who point to Smith's opposition to slavery, colonialism, and empire.<sup class="reference" id="cite_ref-103" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[101]  They show the caricatures of Smith drawn by the opponents of views on hierarchy and inequality in this online article. Emphasized also are Smith's statements of the need for high wages for the poor, and the efforts to keep wages low. In The "Vanity of the Philosopher": From Equality to Hierarchy in Postclassical Economics Peart and Levy also cite Smith's view that a common street porter was not intellectually inferior to a philosopher,<sup class="reference" id="cite_ref-104" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[102]  and point to the need for greater appreciation of the public views in discussions of science and other subjects now considered to be technical. They also cite Smith's opposition to the often expressed view that science is superior to common sense.<sup class="reference" id="cite_ref-105" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[103]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith also explained the relationship between growth of private property and civil government: <p style="margin-top:0.5em;line-height:inherit;">"Men may live together in society with some tolerable degree of security, though there is no civil magistrate to protect them from the injustice of those passions. But avarice and ambition in the rich, in the poor the hatred of labour and the love of present ease and enjoyment, are the passions which prompt to invade property, passions much more steady in their operation, and much more universal in their influence. Wherever there is great property there is great inequality. For one very rich man there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many. The affluence of the rich excites the indignation of the poor, who are often both driven by want, and prompted by envy, to invade his possessions. It is only under the shelter of the civil magistrate that the owner of that valuable property, which is acquired by the labour of many years, or perhaps of many successive generations, can sleep a single night in security. He is at all times surrounded by unknown enemies, whom, though he never provoked, he can never appease, and from whose injustice he can be protected only by the powerful arm of the civil magistrate continually held up to chastise it. The acquisition of valuable and extensive property, therefore, necessarily requires the establishment of civil government. Where there is no property, or at least none that exceeds the value of two or three days' labour, civil government is not so necessary. Civil government supposes a certain subordination. But as the necessity of civil government gradually grows up with the acquisition of valuable property, so the principal causes which naturally introduce subordination gradually grow up with the growth of that valuable property. (...) Men of inferior wealth combine to defend those of superior wealth in the possession of their property, in order that men of superior wealth may combine to defend them in the possession of theirs. All the inferior shepherds and herdsmen feel that the security of their own herds and flocks depends upon the security of those of the great shepherd or herdsman; that the maintenance of their lesser authority depends upon that of his greater authority, and that upon their subordination to him depends his power of keeping their inferiors in subordination to them. They constitute a sort of little nobility, who feel themselves interested to defend the property and to support the authority of their own little sovereign in order that he may be able to defend their property and to support their authority. Civil government, so far as it is instituted for the security of property, is in reality instituted for the defence of the rich against the poor, or of those who have some property against those who have none at all." (Source: The Wealth of Nations, Book 5, Chapter 1, Part 2) ===Portraits, monuments, and banknotes<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === A statue of Smith in Edinburgh's High Street, erected through private donations organised by the Adam Smith Institute.<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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,<sup class="reference" id="cite_ref-clydesdale_106-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[104] <sup class="reference" id="cite_ref-scotbanks_107-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[105]  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 anEnglish banknote.<sup class="reference" id="cite_ref-bbc1_108-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[106]

Statue of Smith built in 1867–1870 at the old headquarters of the University of London, 6 Burlington Gardens.<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">A large-scale memorial of Smith by Alexander Stoddart 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.<sup class="reference" id="cite_ref-109" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[107]  20th-century sculptor Jim Sanborn (best known for the Kryptos sculpture at the United StatesCentral Intelligence Agency) has created multiple pieces which feature Smith's work. AtCentral 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.<sup class="reference" id="cite_ref-110" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[108]  At the University of North Carolina at Charlotte, outside the Belk College of Business Administration, is Adam Smith's Spinning Top.<sup class="reference" id="cite_ref-111" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[109] <sup class="reference" id="cite_ref-112" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[110]  Another Smith sculpture is at Cleveland State University.<sup class="reference" id="cite_ref-113" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[111]  He also appears as the narrator in the 2013 play The Low Road, centred on a proponent on laissez-faire economics in the late eighteenth century but dealing obliquely with thefinancial crisis of 2007–2008 and the recession which followed – in the premiere production, he was portrayed by Bill Paterson. ===Residence<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Adam Smith resided at Panmure house from 1778–90. This residence has now been purchased by the Edinburgh Business School at Heriot Watt University and fundraising has begun to restore it.<sup class="reference" id="cite_ref-114" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[112] <sup class="reference" id="cite_ref-115" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[113]  Part of the Northern end of the original building appears to have been demolished in the 19th century to make way for an iron foundry. ===As a symbol of free market economics<span class="mw-editsection" style="-webkit-user-select:none;font-size:small;margin-left:1em;line-height:1em;display:inline-block;white-space:nowrap;unicode-bidi:-webkit-isolate;"><span class="mw-editsection-bracket" style="color:rgb(85,85,85);">[ edit<span class="mw-editsection-bracket" style="color:rgb(85,85,85);">] === Adam Smith's Spinning Top, sculpture by Jim Sanborn at Cleveland State University<p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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 in London, the Adam Smith Society<sup class="reference" id="cite_ref-urlThe_Adam_Smith_Society_116-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[114]  and the Australian Adam Smith Club,<sup class="reference" id="cite_ref-urlThe_Australian_Adam_Smith_Club_117-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[115]  and in terms such as the Adam Smith necktie.<sup class="reference" id="cite_ref-118" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[116]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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".<sup class="reference" id="cite_ref-urlFRB:_Speech.2C_Greenspan_.E2.80.93_Adam_Smith_.E2.80.93_6_February_2005_119-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[117]  P. J. O'Rourke describes Smith as the "founder of free market economics".<sup class="reference" id="cite_ref-urlAdam_Smith:_Web_Junkie_.E2.80.93_Forbes.com_120-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[118]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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. 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." 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".<sup class="reference" id="cite_ref-121" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[119]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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 andsupply-side economics".<sup class="reference" id="cite_ref-Brown93_122-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[120]  In fact, The Wealth of Nations includes the following statement on the payment of taxes: <p style="margin-top:0.5em;line-height:inherit;">"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."<sup class="reference" id="cite_ref-Smith_1977_loc.3Dbk._V.2C_ch._2_123-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[121] <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Some commentators have argued that Smith's works show support for a progressive, not flat, income tax and that he specifically named taxes that he thought should be required by the state, among them luxury goods taxes and tax on rent.<sup class="reference" id="cite_ref-124" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[122]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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 rights, provide public goods such as infrastructure, provide national defence and regulate banking. 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. 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".<sup class="reference" id="cite_ref-125" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[123]  In addition, he was in favour of retaliatory tariffs and believed that they would eventually bring down the price of goods. He even stated in Wealth of Nations: <p style="margin-top:0.5em;line-height:inherit;">"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."<sup class="reference" id="cite_ref-126" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[124] <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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.<sup class="reference" id="cite_ref-Viner_1927_127-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[125]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">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. 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.<sup class="reference" id="cite_ref-128" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[126] <sup class="reference" id="cite_ref-129" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[127]  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.<sup class="reference" id="cite_ref-New_Ideas_From_Dead_Economists_130-0" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[128]  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 defence.<sup class="reference" id="cite_ref-New_Ideas_From_Dead_Economists_130-1" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[128]  Some have also claimed, Emma Rothschild among them, that Smith supported a minimum wage.<sup class="reference" id="cite_ref-131" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[129]

<p style="margin-top:0.5em;margin-bottom:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Though, Smith had written in his book The Wealth of Nations: <p style="margin-top:0.5em;line-height:inherit;">"The price of labour, it must be observed, cannot be ascertained very accurately anywhere, different prices being often paid at the same place and for the same sort of labour, not only according to the different abilities of the workmen, but according to the easiness or hardness of the masters. Where wages are not regulated by law, all that we can pretend to determine is what are the most usual; and experience seems to show that law can never regulate them properly, though it has often pretended to do so." (Source: The Wealth of Nations, Book 1, Chapter 8) <p style="margin-top:0.5em;line-height:17.9200000762939px;color:rgb(37,37,37);font-family:sans-serif;font-size:14.3999996185303px;">Smith also noted the inequality of bargaining power:<sup class="reference" id="cite_ref-132" style="line-height:1;unicode-bidi:-webkit-isolate;font-size:11.1999998092651px;">[130] <p style="margin-top:0.5em;line-height:inherit;">A landlord, a farmer, a master manufacturer, a merchant, though they did not employ a single workman, could generally live a year or two upon the stocks which they have already acquired. Many workmen could not subsist a week, few could subsist a month, and scarce any a year without employment. In the long run the workman may be as necessary to his master as his master is to him; but the necessity is not so immediate.