56 Quotes & Sayings By Adam Smith

Adam Smith was born in Leominster, Herefordshire, England, in 1723. His family moved several times before settling in Scotland where he was educated at the University of Glasgow. He studied law and began to practice in 1751. He was appointed Sheriff-Depute of Selkirkshire by Frederick, Prince of Wales, and served as a Scottish representative in the House of Commons from 1764 to 1768 Read more

In 1763 he published his Inquiry into the Nature and Causes of the Wealth of Nations. It is considered a landmark economic treatise and inspired a generation of thinkers and statesmen who would create a new economic order through a combination of free market capitalism and laissez-faire economics.

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Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all. Adam Smith
2
The great source of both the misery and disorders of human life, seems to arise from over-rating the difference between one permanent situation and another. Avarice over-rates the difference between poverty and riches: ambition, that between a private and a public station: vain-glory, that between obscurity and extensive reputation. The person under the influence of any of those extravagant passions, is not only miserable in his actual situation, but is often disposed to disturb the peace of society, in order to arrive at that which he so foolishly admires. The slightest observation, however, might satisfy him, that, in all the ordinary situations of human life, a well-disposed mind may be equally calm, equally cheerful, and equally contented. Some of those situations may, no doubt, deserve to be preferred to others: but none of them can deserve to be pursued with that passionate ardour which drives us to violate the rules either of prudence or of justice; or to corrupt the future tranquillity of our minds, either by shame from the remembrance of our own folly, or by remorse from the horror of our own injustice. Adam Smith
There is a great deal of ruin in a nation.
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There is a great deal of ruin in a nation. Adam Smith
Science is the great antidote to the poison of enthusiasm...
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Science is the great antidote to the poison of enthusiasm and superstition. Adam Smith
Public services are never better performed than when their reward...
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Public services are never better performed than when their reward comes only in consequence of their being performed, and is proportioned to the diligence employed in performing them. Adam Smith
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The natural effort of every individual to better his own condition, when suffered to exert itself with freedom and security, is so powerful a principle, that it is alone, and without any assistance, not only capable of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions with which the folly of human laws too often encumbers its operations Adam Smith
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No apprenticeship has ever been thought necessary to qualify for husbandry, the great trade of the country. After what are called the fine arts, and the liberal professions, however, there is perhaps no trade which requires so great a variety of knowledge and experience. Adam Smith
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The man whose whole life is spent in performing a few simple operations, of which the effects are perhaps always the same, or very nearly the same, has no occasion to exert his understanding or to exercise his invention in finding out expedients for removing difficulties which never occur. He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become. Adam Smith
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In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest. Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people. Adam Smith
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All money is a matter of belief. Adam Smith
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No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable. Adam Smith
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If there is any societyamong robbers and murderers, they must at least.. ..abstainfrom robbing and murdering one another. So beneficenceis less essential than justice is to the existence of society; alack of beneficence will make a society uncomfortable, butthe prevalence of injustice will utterly destroy it. Adam Smith
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The great source of both the misery and disorders of human life, seems to arise from over-rating the difference between one permanent situation and another... Adam Smith
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The interest of [businessmen] 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 never to be adopted, till after having been long and carefully examined .. with the most suspicious attention. It comes from an order of men .. who have generally an interest to deceive and even oppress the public . Adam Smith
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No paint or dye can give so splendid a colour as gilding. The merit of their beauty is greatly enhanced by their scarcity. With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eye is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves. Book I, Chapter 11 - Rent of Land, part II . Adam Smith
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To attempt to increase the wealth of any country, either by introducing or by detaining in it an unnecessary quantity of gold and silver, is as absurd as it would be to attempt to increase the good cheer of private families by obliging them to keep an unnecessary number of kitchen utensils. Adam Smith
17
The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities. Adam Smith
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The prudent man always studies seriously and earnestly to understand whatever he professes to understand, and not merely to persuade other people that he understands it; and though his talents may not always be very brilliant, they are always perfectly genuine. He neither endeavours to impose upon you by the cunning devices of an artful impostor, nor by the arrogant airs of an assuming pedant, nor by the confident assertions of a superficial and imprudent pretender. He is not ostentatious even of the abilities which he really possesses. His conversation is simple and modest, and he is averse to all the quackish arts by which other people so frequently thrust themselves into public notice and reputation. . Adam Smith
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Hatred and anger are the greatest poison to the happiness of a good mind. There is, in the very feeling of those passions, something harsh, jarring, and convulsive, something that tears and distracts the breast, and is altogether destructive of that composure and tranquillity of mind which is so necessary to happiness, and which is best promoted by the contrary passions of gratitude and love. Adam Smith
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The prudent man always studies seriously and earnestly to understand whatever he professes to understand, and not merely to persuade other people that he understands it; and though his talents may not always be very brilliant, they are always perfectly genuine Adam Smith
21
Let us suppose that the great empire of China, with all its myriads of inhabitants, was suddenly swallowed up by an earthquake, and let us consider how a man of humanity in Europe, who had no sort of connection with that part of the world, would be affected upon receiving intelligence of this dreadful calamity. He would, I imagine, first of all, express very strongly his sorrow for the misfortune of that unhappy people, he would make many melancholy reflections upon the precariousness of human life, and the vanity of all the labours of man, which could thus be annihilated in a moment. He would too, perhaps, if he was a man of speculation, enter into many reasonings concerning the effects which this disaster might produce upon the commerce of Europe, and the trade and business of the world in general. And when all this fine philosophy was over, when all these humane sentiments had been once fairly expressed, he would pursue his business or his pleasure, take his repose or his diversion, with the same ease and tranquillity, as if no such accident had happened. The most frivolous disaster which could befall himself would occasion a more real disturbance. If he was to lose his little finger to-morrow, he would not sleep to-night; but, provided he never saw them, he will snore with the most profound security over the ruin of a hundred millions of his brethren, and the destruction of that immense multitude seems plainly an object less interesting to him, than this paltry misfortune of his own. To prevent, therefore, this paltry misfortune to himself, would a man of humanity be willing to sacrifice the lives of a hundred millions of his brethren, provided he had never seen them? Human nature startles with horror at the thought, and the world, in its greatest depravity and corruption, never produced such a villain as could be capable of entertaining it. But what makes this difference? When our passive feelings are almost always so sordid and so selfish, how comes it that our active principles should often be so generous and so noble? When we are always so much more deeply affected by whatever concerns ourselves, than by whatever concerns other men; what is it which prompts the generous, upon all occasions, and the mean upon many, to sacrifice their own interests to the greater interests of others? It is not the soft power of humanity, it is not that feeble spark of benevolence which Nature has lighted up in the human heart, that is thus capable of counteracting the strongest impulses of self-love. It is a stronger power, a more forcible motive, which exerts itself upon such occasions. It is reason, principle, conscience, the inhabitant of the breast, the man within, the great judge and arbiter of our conduct. . Adam Smith
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In the common degree of the moral, there is no virtue. Virtue is excellence. Adam Smith
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Virtue is excellence, something uncommonly great and beautiful, which rises far above what is vulgar and ordinary. Adam Smith
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The prudent man is always sincere, and feels horror at the very thought of exposing himself to the disgrace which attends upon the detection of falsehood. But though always sincere, he is not always frank and open; and though he never tells any thing but the truth, he does not always think himself bound, when not properly called upon, to tell the whole truth. As he is cautious in his actions, so he is reserved in his speech; and never rashly or unnecessarily obtrudes his opinion concerning either things or persons. Adam Smith
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People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. Adam Smith
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Commerce and manufactures can seldom flourish long in any state which does not enjoy a regular administration of justice, in which the people do not feel themselves secure in the possession of their property, in which the faith of contracts is not supported by law, and in which the authority of the state is not supposed to be regularly employed in enforcing the payment of debts from all those who are able to pay. Commerce and manufactures, inshort, can seldom flourish in any state in which there is not a certain degree of confidence in the justice of government. Adam Smith
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A highway, a bridge, a navigable canal, for example, may in most cases be both made and maintained by a small toll upon the carriages which make use of them: a harbour, by moderate port-duty upon the tonnage of the shipping which load or unload in it. The coinage, another institution for facilitating commerce, in many countries, not only defrays its own expense, but affords a small revenue or seignorage to the sovereign. The post-office, another institution for the same purpose, over and above defraying its own expense, affords in almost all countries a very considerable revenue to the sovereign. When the carriages which pass over a highway or a bridge, and the lighters which sail upon a navigable canal, pay toll in proportion to their weight or their tonnage, they pay for the maintenance of those public works exactly in proportion to the wear and tear which they occasion of them. It seems scarce possible to invent a more equitable way of maintaining such works. Adam Smith
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Virtue is more to be feared than vice, because its excesses are not subject to the regulation of conscience. Adam Smith
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What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom. Adam Smith
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All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind. Adam Smith
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Of their passions in the same object at that particular time. Adam Smith
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I have always considered David Hume as approaching as nearly the idea of a perfectly wise and virtuous man as perhaps the nature of human frailty will allow. Adam Smith
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How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasure of seeing it. Adam Smith
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People of the same trade seldom meet together even for merriment and diversion but the conversation ends in a conspiracy against the public or in some contrivance to raise prices. Adam Smith
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By pursuing his own interest (the individual) 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. Adam Smith
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What can be added to the happiness of man who is in health out of debt and has a clear conscience? Adam Smith
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Man an animal that makes bargains. Adam Smith
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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. Adam Smith
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Poor David Hume is dying fast, but with more real cheerfulness and good humor and with more real resignation to the necessary course of things, than any whining Christian ever dyed with pretended resignation to the will of God. Adam Smith
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To feel much for others and little for ourselves; to restrain our selfishness and exercise our benevolent affections, constitute the perfection of human nature. Adam Smith
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Resentment seems to have been given us by nature for a defense, and for a defense only! It is the safeguard of justice and the security of innocence. Adam Smith
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Adventure upon all the tickets in the lottery, and you lose for certain; and the greater the number of your tickets the nearer your approach to this certainty. Adam Smith
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Happiness never lays its finger on its pulse. Adam Smith
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What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience? Adam Smith
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I have never known much good done by those who affected to trade for the public good. Adam Smith
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The real and effectual discipline which is exercised over a workman is that of his customers. It is the fear of losing their employment which restrains his frauds and corrects his negligence. Adam Smith
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The propensity to truck, barter and exchange one thing for another is common to all men, and to be found in no other race of animals. Adam Smith
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Great ambition, the desire of real superiority, of leading and directing, seems to be altogether peculiar to man, and speech is the great instrument of ambition. Adam Smith
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This is one of those cases in which the imagination is baffled by the facts. Adam Smith
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Labour was the first price, the original purchase - money that was paid for all things. It was not by gold or by silver, but by labour, that all wealth of the world was originally purchased. Adam Smith
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No complaint... is more common than that of a scarcity of money. Adam Smith
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Labor was the first price, the original purchase - money that was paid for all things. Adam Smith
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Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things. Adam Smith
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As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce. Adam Smith
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No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable. Adam Smith