We are excited to join our colleagues at Liberty Matters in commemorating the 250th anniversary of the publication of An Inquiry into the Nature and Causes of the Wealth of Nations through a series of six insightful weekly essays.
In this fifth essay, Jacob T. Levy delves into one of Adam Smith’s most renowned assertions found in Book V of Wealth of Nations. Here’s an excerpt from the article:
“Little else,” wrote 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 is well-regarded in many circles, not solely for its advocacy of lower taxes, but also for the reassurance it provides regarding governance. The notion of a “natural course of things” implies that political systems are likely to function reasonably well. Effective governance largely hinges on abstaining from unnecessary actions—avoiding wars and refraining from excessive taxation. For contemporary economists who view themselves as the rightful successors to WN, the suggestion that political science may not be overly complex can be an added benefit.
