Adam Smith Quotes

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.

Science is the great antidote to the poison of enthusiasm and superstition.

The first thing you have to know is yourself. A man who knows himself can step outside himself and watch his own reactions like an observer.

Mercy to the guilty is cruelty to the innocent.

Never complain of that of which it is at all times in your power to rid yourself.

It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. 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

No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable.

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.

It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.

Virtue is more to be feared than vice, because its excesses are not subject to the regulation of conscience.

We have to grasp, as Marx and Adam Smith did, that corporations are not concerned with the common good. They exploit, pollute, impoverish, repress, kill, and lie to make money. They throw poor people out of homes, let the uninsured die, wage useless wars for profit, poison and pollute the ecosystem, slash social assistance programs, gut public education, trash the global economy, plunder the U.S. Treasury and crush all popular movements that seek justice for working men and women. They worship money and power.

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.

Individual Ambition Serves the Common Good.

Wherever there is great property, there is great inequality.

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.

Man is an animal that makes bargains: no other animal does this - no dog exchanges bones with another.

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.

You cannot defeat darkness by running from it, nor can you conquer your inner demons by hiding them from the world. In order to defeat the darkness, you must bring it into the light.

Every man lives by exchanging.

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.

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.

Problems worthy of attacks, prove their worth by hitting back

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.

The learned ignore the evidence of their senses to preserve the coherence of the ideas of their imagination.

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.

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.

What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom.

Man naturally desires, not only to be loved, but to be lovely.

The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities.

The strategy for the discoverers and entrepreneurs is to rely less on top-down planning and focus on maximum tinkering and recognizing opportunities when they present themselves. So I disagree with the followers of Marx and those of Adam Smith: the reason free markets work is because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or “incentives” for skill. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as you can.

How do you cause people to believe in an imagined order such as Christianity, democracy or capitalism? First, you never admit that the order is imagined. You always insist that the order sustaining society is an objective reality created by the great gods or by the laws of nature. People are unequal, not because Hammurabi said so, but because Enlil and Marduk decreed it. People are equal, not because Thomas Jefferson said so, but because God created them that way. Free markets are the best economic system, not because Adam Smith said so, but because these are the immutable laws of nature.

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

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with most unnecessary attention but assume an authority which could safely be trusted to no council and senate whatever, and which would nowhere be so dangerous as in the hands of man who have folly and presumption enough to fancy himself fit to exercise it.

Though our brother is upon the rack, as long as we ourselves are at ease, our senses will never inform us of what he suffers. They never did and never can carry us beyond our own persons, and it is by the imagination only that we form any conception of what are his sensations...His agonies, when they are thus brought home to ourselves, when we have this adopted and made them our own, begin at last to affect us, and we then tremble and shudder at the thought of what he feels.

The value of any commodity, therefore, to the person who possesses it, and who means not to use or consume it himself, but to exchange it for other commodities, is equal to the quantity of labour which it enables him to purchase or command. Labour, therefore, is the real measure of the exchangeable value of all commodities. The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it.

76. David Hume – Treatise on Human Nature; Essays Moral and Political; An Enquiry Concerning Human Understanding 77. Jean-Jacques Rousseau – On the Origin of Inequality; On the Political Economy; Emile – or, On Education, The Social Contract 78. Laurence Sterne – Tristram Shandy; A Sentimental Journey through France and Italy 79. Adam Smith – The Theory of Moral Sentiments; The Wealth of Nations 80. Immanuel Kant – Critique of Pure Reason; Fundamental Principles of the Metaphysics of Morals; Critique of Practical Reason; The Science of Right; Critique of Judgment; Perpetual Peace 81. Edward Gibbon – The Decline and Fall of the Roman Empire; Autobiography 82. James Boswell – Journal; Life of Samuel Johnson, Ll.D. 83. Antoine Laurent Lavoisier – Traité Élémentaire de Chimie (Elements of Chemistry) 84. Alexander Hamilton, John Jay, and James Madison – Federalist Papers 85. Jeremy Bentham – Introduction to the Principles of Morals and Legislation; Theory of Fictions 86. Johann Wolfgang von Goethe – Faust; Poetry and Truth 87. Jean Baptiste Joseph Fourier – Analytical Theory of Heat 88. Georg Wilhelm Friedrich Hegel – Phenomenology of Spirit; Philosophy of Right; Lectures on the Philosophy of History 89. William Wordsworth – Poems 90. Samuel Taylor Coleridge – Poems; Biographia Literaria 91. Jane Austen – Pride and Prejudice; Emma 92. Carl von Clausewitz – On War 93. Stendhal – The Red and the Black; The Charterhouse of Parma; On Love 94. Lord Byron – Don Juan 95. Arthur Schopenhauer – Studies in Pessimism 96. Michael Faraday – Chemical History of a Candle; Experimental Researches in Electricity 97. Charles Lyell – Principles of Geology 98. Auguste Comte – The Positive Philosophy 99. Honoré de Balzac – Père Goriot; Eugenie Grandet 100. Ralph Waldo Emerson – Representative Men; Essays; Journal 101. Nathaniel Hawthorne – The Scarlet Letter 102. Alexis de Tocqueville – Democracy in America 103. John Stuart Mill – A System of Logic; On Liberty; Representative Government; Utilitarianism; The Subjection of Women; Autobiography 104. Charles Darwin – The Origin of Species; The Descent of Man; Autobiography 105. Charles Dickens – Pickwick Papers; David Copperfield; Hard Times 106. Claude Bernard – Introduction to the Study of Experimental Medicine 107. Henry David Thoreau – Civil Disobedience; Walden 108. Karl Marx – Capital; Communist Manifesto 109. George Eliot – Adam Bede; Middlemarch 110. Herman Melville – Moby-Dick; Billy Budd 111. Fyodor Dostoevsky – Crime and Punishment; The Idiot; The Brothers Karamazov 112. Gustave Flaubert – Madame Bovary; Three Stories 113. Henrik Ibsen – Plays 114. Leo Tolstoy – War and Peace; Anna Karenina; What is Art?; Twenty-Three Tales 115. Mark Twain – The Adventures of Huckleberry Finn; The Mysterious Stranger 116. William James – The Principles of Psychology; The Varieties of Religious Experience; Pragmatism; Essays in Radical Empiricism 117. Henry James – The American; The Ambassadors 118. Friedrich Wilhelm Nietzsche – Thus Spoke Zarathustra; Beyond Good and Evil; The Genealogy of Morals;The Will to Power 119. Jules Henri Poincaré – Science and Hypothesis; Science and Method 120. Sigmund Freud – The Interpretation of Dreams; Introductory Lectures on Psychoanalysis; Civilization and Its Discontents; New Introductory Lectures on Psychoanalysis 121. George Bernard Shaw – Plays and Prefaces

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.

Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog. Nobody ever saw one animal by its gestures and natural cries signify to another, this is mine, that yours; I am willing to give this for that....But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this. Give me that which I want, and you shall have this which you want, is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of.

The man of system, on the contrary, is apt to be very wise in his own conceit; and is often so enamoured with the supposed beauty of his own ideal plan of government, that he cannot suffer the smallest deviation from any part of it. He goes on to establish it completely and in all its parts, without any regard either to the great interests, or to the strong prejudices which may oppose it. He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board. He does not consider that the pieces upon the chess-board have no other principle of motion besides that which the hand impresses upon them; but that, in the great chess-board of human society, every single piece has a principle of motion of its own, altogether different from that which the legislature might chuse to impress upon it. If those two principles coincide and act in the same direction, the game of human society will go on easily and harmoniously, and is very likely to be happy and successful. If they are opposite or different, the game will go on miserably, and the society must be at all times in the highest degree of disorder.

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.