Quotes about Adam Smith

62 Sourced Quotes

The most distinguished advocate and the most distinguished critic of modern captialism were in agreement on one essential point: the job makes the person. Adam Smith and Karl Marx both recognized the extent to which people's attitudes and behaviors take shape out of the experiences they have in their work.

Rosabeth Moss Kanter

What strikes one here above all is the crudely empirical conception of profit derived from the outlook of the ordinary capitalist, which wholly contradicts the better esoteric understanding of Adam Smith.

It was Adam Smith, the father of free-market economics, who once said, They who feed, clothe, and lodge the whole body of the people should have such a share of the produce of their own labor as to be themselves tolerably well fed, clothed, and lodged. And for those of you who don't speak old-English let me translate. It means if you work hard, you should make a decent living. If you work hard, you should be able to support a family.

Gandhi rejects the Adam Smith notion of human nature as motivated by self-interest and brute needs and returns us to our spiritual dimension with its impulses for nonviolence, justice and equality.
He exposes the fallacy of the claim that everyone can be rich and successful provided they work hard. He points to the millions who work themselves to the bone and still remain hungry.

It is quite possible that future generations will look upon arguments about the inferiority of the socialist plan as we look upon Adam Smith's argument about joint stock companies which, also, were simply false.

Joseph Schumpeter

It is not for nothing that Skaldin in one part of his book quotes Adam Smith: we have seen that both his views and the character of his arguments in many respects repeat the theses of that great ideologist of the progressive bourgeoisie.

Modern sociology is virtually an attempt to take up the larger program of social analysis and interpretation which was implicit in Adam Smith's moral philosophy, but which was suppressed for a century by prevailing interest in the technique of the production of wealth.

Albion Woodbury Small

All those who, since Adam Smith, have turned their attention to Political Economy, agree that in reality we do not buy articles of consumption with money, the circulating medium with which we pay for them. We must in the first instance have bought this money itself by the sale of our produce.

Jean-Baptiste Say

Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.

Henry David Thoreau

Power is concentrated. The general policy is exactly the way that Adam Smith described it: it's designed for the benefit of its principal architects, the powerful. It serves "the vile maxim of the masters: all for ourselves and nothing for anyone else". Those are the basic rules of the world.

It was the mystical dogma of Bentham and Adam Smith and the rest, that some of the worst of human passions would turn out to be all for the best. It was the mysterious doctrine that selfishness would do the work of unselfishness.

G. K. Chesterton

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.

Adam Smith was not a big fan of the pursuit of fame and fortune. His view of what we truly want, of what really makes us happy, cuts to the core of things. It takes him only twelve words to get to the heart of the matter: Man naturally desires, not only to be loved, but to be lovely.

If I have to hire a labourer for a week, and instead of ten shillings I pay him eight, no variation having taken place in the value of money, the labourer can probably obtain more food and necessaries with his eight shillings than he before obtained for ten: but this is owing, not to a rise in the real value of his wages, as stated by Adam Smith, and more recently by Mr. Malthus, but to a fall in the value of the things on which his wages are expended, things perfectly distinct; and yet for calling this a fall in the real value of wages, I am told that I adopt new and unusual language, not reconcilable with the true principals of the science. To me it appears that the unusual and, indeed, inconsistent language is that used by my opponents.

Economies are enormous groups of people engaged in a multitude of interdependent activities. What prevents decentralized decision making from degenerating into chaos? What coordinates the actions of the millions of people with their varying abilities and desires? What ensures that what needs to be done is in fact done? The answer, in a word, is prices. If an invisible hand guides market economies, as Adam Smith famously suggested, then the price system is the baton that the invisible hand uses to conduct the economic orchestra.

To understand the economy then is to comprehend how it is driven by the animal spirits. Just as Adam Smith's invisible hand is the keynote of classical economics, Keynes' animal spirits are the keynote to a different view of the economy — a view that explains the underlying instabilities of capitalism.

Robert J. Shiller

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.

Nassim Nicholas Taleb

The way to do political, rather than cosmopolitical, economy is straightforward: consolidate the national balance sheet, treating the entire nation as a single corporation. Current account deficits then appear as losses. The notorious decay of nations which run a chronic trade deficit appears as a parallel with the notorious decay of corporations which run at a chronic loss.
Similarly, the old mercantilist strategy of accumulating precious metals—much mocked by Adam Smith—appears as no more than the accumulation of retained earnings by a profitable polity.

Adam Smith and Malthus and Ricardo! There is something about these three figures to evoke more than ordinary sentiments from us their children in the spirit.

John Maynard Keynes

The moral theories of Hutcheson, David Hume and Adam Smith, identify sympathy or love, perhaps combined with other psychological factors (such as disinterestedness, calm judgment, or impartial spectatorship) as the psychological foundation of all morality. Kant always had much respect for these theories. But it was a crucial turning point in Kant's thinking about morality when he decided that no such theory could give an adequate account of morality.

Economists must leave to Adam Smith alone the glory of the Quarto, must pluck the day, fling pamphlets into the wind, write always sub specie temporis, and achieve immortality by accident, if at all.

John Maynard Keynes

When Adam Smith was being incomprehensible, he didn't have the luxury of brief, snappy technical terms as a shorthand for incoherence.

Adam Smith himself was under no allusion about the desire of individuals, particularly business men, to create privileged positions for themselves.

Eric Roll, Baron Roll of Ipsden

Scientists are not robotic inducing machines that infer structures of explanation only from regularities observed in natural phenomena (assuming, as I doubt, that such a style of reasoning could ever achieve success in principle). Scientists are human beings, immersed in culture, and struggling with all the curious tools of inference that mind permits […]. Culture can potentiate as well as constrain—as Darwin's translation of Adam Smith's laissez-faire economic models into biology as the theory of natural selection. In any case, objective minds do not exist outside culture, so we must make the best of our ineluctable embedding.

Stephen Jay Gould

For such fields deep historical studies can have considerable contemporary relevance and hence fall within the boundaries of the field itself. Weber and Durkheim are still studied by sociologists, just as Adam Smith and Ricardo are still studied by economists, whereas Galilean and Newtonian studies are not part of physics but of an altogether different discipline, the history of science.

Adam Smith's invisible hand does exist, but as an emergent property of a complex system. It has a fuzzy tendency to reduce big price discrepancies, but it acts in a rather haphazard way.

[Adam Smith was] a higher above all genius (...) who had recognized some mistakes of the mercantile and physiocrats systems, put new principles of a theory called the industrial system, and directed minds for this road, on which they should necessarily advance

Fryderyk Skarbek

Hope will come with the return of the language of class conflict and rebellion, language that has been purged from the lexicon of the liberal class. This does not mean we have to agree with Karl Marx, who advocated violence and whose worship of the state as a utopian mechanism led to another form of working class enslavement, but we have to learn again to speak in the vocabulary Marx employed. We have to grasp, as Marx and Adam Smith did, that corporations are not concerned with the common good.

When the classical worldview was applied to social science, the dominant notions turned out to be struggle for survival, the profit of the individual, with at best an assumed automatic coincidence of individual and societal good (through Adam Smith's "invisible hand"). When the systemic vision inspires the theories of social science, the values of competition are mitigated by those of cooperation, and the emphasis on individualistic work ethos is tempered with a tolerance of diversity and of experimentation with institutions and practices that foster man-man and man- nature adaptation and harmony.

When Hume and Adam Smith prophesied that a little increase of national debt beyond the then amount of it, would probably occasion bankruptcy; the main cause of their error was the natural one, of not being able to see the vast increase of productive power to which the nation would subsequently obtain.

Thomas Robert Malthus