Adam Smith

Economics Scottish 1723 – 1790 221 quotes

Father of economics, The Wealth of Nations

Most quoted

"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."

— from The Wealth of Nations, 1776

"The sovereign has only three duties to attend to; three duties of great importance, indeed, but plain and intelligible to common understandings: first, the duty of protecting the society from the violence and invasion of other independent societies; secondly, the duty of protecting, as far as possible, every member of the society from the injustice or oppression of every other member of it, or the duty of establishing an exact administration of justice; and, thirdly, the duty of erecting and maintaining certain public works and certain public institutions, which it can never be for the interest of any individual, or small number of individuals, to erect and maintain."

— from The Wealth of Nations, 1776

"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."

— from An Inquiry into the Nature and Causes of the Wealth of Nations, 1776

All quotes by Adam Smith (221)

The greatest happiness of the greatest number is the foundation of morals and legislation.

The Theory of Moral Sentiments 1759

The difference between a man of sense and a fool is, that the former never makes the same mistake twice.

Attributed

The first thing you have to learn is how to be a good loser.

Attributed

The disposition to admire, and almost to worship, the rich and the powerful, and to despise, or, at least, to neglect persons of poor and mean condition, though necessary both to establish and to maintain the distinction of ranks and the order of society, is, at the same time, the great and most universal cause of the corruption of our moral sentiments.

The Theory of Moral Sentiments 1759

The greatest and most important service which can be rendered to any country is to improve the education of the people.

The Wealth of Nations 1776

The expense of defending the society, and that of supporting the dignity of the chief magistrate, are both laid out for the general benefit of the whole society.

The Wealth of Nations 1776

The price of labour, it must be observed, is not only affected by the proportion which the demand for it bears to the supply, but likewise by the proportion which the quantity of money in circulation bears to the quantity of goods in the market.

The Wealth of Nations 1776

The value of a commodity, or the quantity of any other commodity for which it will exchange, depends on the quantity of labour which is necessary to produce it, and to bring it to market.

The Wealth of Nations 1776

The accumulation of stock must, in the nature of things, be previous to the division of labour.

The Wealth of Nations 1776

The natural progress of opulence is for agriculture to be extended before manufactures, and manufactures before foreign commerce.

The Wealth of Nations 1776

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.

The Theory of Moral Sentiments 1759

Every man is rich or poor according to the degree in which he can afford to enjoy the necessaries, conveniences, and amusements of human life.

The Wealth of Nations 1776

To feel much for others and little for ourselves, that to restrain our selfish, and to indulge our benevolent affections, constitutes the perfection of human nature.

The Theory of Moral Sentiments 1759

The real tragedy of life is when men are afraid of the light.

Attributed

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

The Wealth of Nations 1776

It is the highest impertinence and presumption, therefore, in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense.

The Wealth of Nations 1776

The discipline of colleges and universities is in general contrived, not for the benefit of the students, but for the interest, or more properly speaking, for the ease of the masters.

The Wealth of Nations 1776

With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eyes is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves.

The Wealth of Nations 1776

The wise and the virtuous can well bear the sight of either poverty or riches.

The Theory of Moral Sentiments 1759

In the order of all human institutions, the division of labour precedes the distribution of stock.

The Wealth of Nations 1776