Adam Smith Economic Quotes & Sayings

A nation is not made wealthy by the childish accumulation of shiny metals, but it enriched by the economic prosperity of it's people. — Adam Smith

It rests on the attempt since the 1970s to translate a pathological degeneration of the principle of laissez-faire into economic reality by the systematic retreat of states from any regulation or control of the activities of profit-making enterprise. This attempt to hand over human society to the (allegedly) self-controlling and wealth- or even welfare-maximising market, populated (allegedly) by actors in rational pursuit of their interests, had no precedent in any earlier phase of capitalist development in any developed economy, not even the USA. It was a reductio ad absurdum of what its ideologists read into Adam Smith, as the correspondingly extremist 100% state-planned command economy of the USSR was of what the Bolsheviks read into Marx. — Eric Hobsbawm

On the conservative side, today's libertarianism is far more dogmatic and devoid of qualification than the liberalism of Adam Smith or J.S. Mill. Like Marxism, libertarianism is a utopian worldview based on an economic-determinist vision of history. Unlike Marxism, libertarianism is highly specific in its predictions about the transition to the utopian world order, rendering it vulnerable to fact. — Michael Lind

For centuries, economic thinkers, from Adam Smith to John Maynard Keynes, have tried to identify the elusive formula that makes some countries more prosperous and successful than others. My curiosity about this topic spurred me, as a young professor of economics in the late 1970s, to research new ways of measuring national competitiveness. — Klaus Schwab

Adam Smith was not the proponent of any one class. He was a slave to his system. His whole economic philosophy stemmed from his unquestioning faith in the ability of the market to guide the system to its point of highest return. The market-that wonderful social machine-would take care of society's needs if it was left alone. Don't try to do good, says Smith. Let good emerge as the by-product of selfishness. — Robert Heilbroner

Yet economics purports to be strangely exempt from this fact of life. From Adam Smith's day to our own, the chief concern of the discipline has been to render economic events unsurprising ... The discernment of orderly rules governing the apparent chaos of life was a remarkable achievement and continues to amaze. — George Gilder

From the equilibrium and spontaneous order of Adam Smith and his heirs, from invisible-handed markets and perfect competition, supply and demand, and rewards and punishments, I was pushed to theories of disequilibrium and disorder, and information and noise, as the keys to understanding economic progress. — George Gilder

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

In essence, then, the common picture of economic thought after Smith needs to be reversed. In the conventional view, Adam Smith, the towering founder, by his theoretical genius and by the sheer weight of his knowledge of institutional facts, single-handedly created the discipline of political economy as well as the public policy of the free market, and did so out of a jumble of mercantilist fallacies and earlier absurd scholastic notions of a 'just price'. The real story is almost the opposite. Before Smith, centuries of scholastic analysis had developed an excellent value theory and monetary theory, along with corresponding free market and hard-money conclusions. Originally embedded among the scholastics in a systematic framework of property rights and contract law based on natural law theory, economic theory — Anonymous

The appeal to the intellectually insecure is also more important than it might seem. Because economics touches so much of life, everyone wants to have an opinion. Yet the kind of economics covered in the textbooks is a technical subject that many people find hard to follow. How reassuring, then, to be told that it is all irrelevant
that all you really need to know are a few simple ideas! Quite a few supply-siders have created for themselves a wonderful alternative intellectual history in which John Maynard Keynes was a fraud, Paul Samuelson and even Milton Friedman are fools, and the true line of deep economic thought runs from Adam Smith through obscure turn-of-the-century Austrians straight to them. — Paul Krugman

The key insight of Adam Smith's Wealth of Nations is misleadingly simple: if an exchange between two parties is voluntary, it will not take place unless both believe they will benefit from it. Most economic fallacies derive from the neglect of this simple insight, from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another. — Milton Friedman

Adam Smith's was a real universalism in intent. Laissez Faire was intended to establish a world community as well as a natural harmony of interests within each nation ... But the "children of darkness" were able to make good use of his creed. A dogma which was intended to guarantee the economic freedom of the individual became the "ideology" of vast corporate structures of a later period of capitalism, used by them, and still used, to prevent a proper political control of their power. — Reinhold Niebuhr

We may consider the sabbath as an alternative to the endless demands of economic reality, more specifically the demands of market ideology that depend, as Adam Smith had already seen, on the generation of needs and desires that will leave us endlessly "rest-less," inadequate, unfulfilled, and in pursuit of that which may satiate desire. — Walter Brueggemann

Throughout this book I have tried to point out why interest, especially as it has been used by people such as Hume, Smith, Tocqueville, and Weber, is still a very useful concept. One reason why the concept of interest imparts a distinct dynamic to the analysis is that it is mainly interest which makes people takes action. It supplies the force that makes people get up at dawn and work very hard throughout the day. Combined with interests of others, it is a force that can move mountains and create new societies. — Richard Swedberg