We are thrilled to collaborate with our partners at Liberty Matters in commemorating the 250th anniversary of the release of An Inquiry into the Nature and Causes of the Wealth of Nations through an engaging series of six weekly essays.
In this fifth installment, Jacob T. Levy delves into one of Adam Smith’s renowned assertions found in Book V of Wealth of Nations. Here’s an excerpt:
“Little else,” observed Adam Smith in Book V of Wealth of Nations, “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. All governments which thwart this natural course, which force things into another channel, or which endeavour to arrest the progress of society at a particular point, are unnatural, and to support themselves are obliged to be oppressive and tyrannical.”
This passage enjoys a certain popularity, particularly among those who favor minimal taxation. However, its allure extends beyond that, providing a rather soothing perspective on governance. The implication that political systems, when left to their own devices, will tend to function reasonably well, presents an almost utopian view. Indeed, governing effectively appears to boil down to the principle of not acting: avoiding warfare, refraining from heavy taxation, and allowing society to evolve organically. For contemporary economists who consider themselves the rightful heirs of WN, this notion that political science is relatively uncomplicated could be seen as an additional perk.
