Adam Smith Quotes

I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable. ~ Warren Buffett

The liberal reward of labour, therefore, as it is the affect of increasing wealth, so it is the cause of increasing population. To complain of it, is to lament over the necessary effect and cause of the greatest public prosperity. ~ Adam Smith

Our lives are a journey. As we move forward, we will not only figuratively experience the geography of life: the exhilaration of high mountains, the tranquility of calm meadows, the isolation of treacherous canyons, but we will also experience the seasons of life: the hope of spring, the abundance of summer, the harvest of autumn, and yes, the darkness and depression of winter. ~ Seth Adam Smith

In ease of body and peace of mind, all the different ranks of life are nearly upon the same level, and the beggar who suns himself by the highway, possesses that security which kings are fighting for. ~ Adam Smith

When exactly did this downward cultural spiral begin, this loss of tact and refinement and understanding that some things should not be said or directly represented? When did we no longer appreciate that to dignify certain modes of behavior, manners, and ways of being with artistic representation was implicitly to glorify and promote them? There is, as Adam Smith said, a deal of ruin in a nation: and this truth applies as much to a nation's culture as to its economy. The work of cultural destruction, while often swifter, easier, and more self-conscious than that of construction, is not the work of a moment. Rome wasn't destroyed in a day. ~ Theodore Dalrymple

In the long-run the workman may be as necessary to his master as his master is to him, but the necessity is not so immediate. ~ Adam Smith

But no moral philosopher, from Aristotle to Aquinas, to John Locke and Adam Smith, divorced economics from a set of moral ends or held the production of wealth to be an end in itself; rather it was seen as a means to the realization of virtue, a means of leading a civilized life. ~ Daniel Bell

But Adam Smith was a philosopher as well as well as an economist, famous in his time as much for his Theory of Moral Sentiments as for The Wealth of Nations. And as he understood so well, society is more than the sum of its individual parts. ~ Paul Ormerod

The emotions of the spectator will still be very apt to fall short of the violence of what is felt by the sufferer. Mankind, though naturally sympathetic, never conceive, for what has befallen another, that degree of passion which naturally animates the person principally concerned. ~ Adam Smith

To feel much for others and little for ourselves; to restrain our selfishness and exercise our benevolent affections, constitute the perfection of human nature. ~ Adam Smith

Of valid economics pre-dating the Power Age (steam and electricity), there remains not a vestige. Of valid economics pre-dating the intensive and extensive use of electricity there will soon exist only rags and tatters. We still have to thank Adam Smith for insisting 'Consumption is the sole end and purpose of production;' but the old form of the law of demand and supply is outmoded, since supply has become practically inexhaustible. ~ Harriet Boyd Hawes

It is only through seeking that we find what we are looking for. ~ Seth Adam Smith

But one half the children born, it is computed, die before the age of manhood. ~ Adam Smith

Have you spent so much time in the darkness that you cannot understand the light? ~ Seth Adam Smith

Like small seeds, small deeds can make a big difference. ~ Seth Adam Smith

Nothing is more graceful than habitual cheerfulness. ~ Adam Smith

The prudent man is always sincere, and feels horror at the very thought of exposing himself to the disgrace which attends upon the detection of falsehood. But though always sincere, he is not always frank and open; and though he never tells any thing but the truth, he does not always think himself bound, when not properly called upon, to tell the whole truth. As he is cautious in his actions, so he is reserved in his speech; and never rashly or unnecessarily obtrudes his opinion concerning either things or persons. ~ Adam Smith

To attempt to increase the wealth of any country, either by introducing or by detaining in it an unnecessary quantity of gold and silver, is as absurd as it would be to attempt to increase the good cheer of private families by obliging them to keep an unnecessary number of kitchen utensils. ~ Adam Smith

Foresight of our own dissolution is so terrible to us, and that the idea of those circumstances, which undoubtedly can give us no pain when we are dead, makes us miserable while we are alive. And from thence arises one of the most important principles in human nature, the dread of death, the great poison to the happiness, but the great restraint upon the injustice of mankind, which, while it afflicts and mortifies the individual, guards and protects the society. ~ Adam Smith

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. ~ Adam Smith

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

In every part of the universe we observe means adjusted with the nicest artifice to the ends which they are intended to produce; and in the mechanism of a plant, or animal body, admire how every thing is contrived for advancing the two great purposes of nature, the support of the individual, and the propagation of the species. ~ Adam Smith

The appeal to the intellectually insecure is also more important than it might seem. Because economics touches so much of life, everyone wants to have an opinion. Yet the kind of economics covered in the textbooks is a technical subject that many people find hard to follow. How reassuring, then, to be told that it is all irrelevant
that all you really need to know are a few simple ideas! Quite a few supply-siders have created for themselves a wonderful alternative intellectual history in which John Maynard Keynes was a fraud, Paul Samuelson and even Milton Friedman are fools, and the true line of deep economic thought runs from Adam Smith through obscure turn-of-the-century Austrians straight to them. ~ Paul Krugman

Don't be afraid to be the person who loves the most ~ Seth Adam Smith

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

The great secret of education is to direct vanity to proper objects. ~ Adam Smith

The first and probably most fundamental aspect of this crisis is that we are now close to the commodification of everything. That is, historical capitalism is in crisis precisely because, in pursuing the endless accumulation of capital, it is beginning to approximate that state of being Adam Smith asserted was 'natural' to man but which has never historically existed. The 'propensity [of humanity] to truck, barter, and exchange one thing for another' has entered into domains and zones previously untouched, and the pressure to expand commodification is relatively unchecked. ~ Immanuel Wallerstein

It appears, accordingly, from the experience of all ages and nations, I believe, that the work done by freemen comes cheaper in the end than that performed by slaves. ~ Adam Smith

That wealth and greatness are often regarded with the respect and admiration which are due only to wisdom and virtue; and that the contempt, of which vice and folly are the only proper objects, is most often unjustly bestowed upon poverty and weakness, has been the complaint of moralists in all ages. ~ Adam Smith

To take an example, therefore, from a very trifling manufacture; but one in which the division of labour has been very often taken notice of, the trade of the pin-maker; a workman not educated to this business (which the division of labour has rendered a distinct trade), nor acquainted with the use of the machinery employed in it (to the invention of which the same division of labour has probably given occasion), could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty. But in the way in which this business is now carried on, not only the whole work is a peculiar trade, but it is divided into a number of branches, of which the greater part are likewise peculiar trades. One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving, the head; to make the head requires two or three distinct operations; to put it on is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper; and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which, in some manufactories, are all performed by distinct hands, though in others the same man will sometimes perform two or three of them. I have seen a small manufactory of this kind where ten men only were employed, and where some of them consequently performed two or three distinct operations. But though they were very poor, ~ Adam Smith

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

I am a beau only in my books. ~ Adam Smith

You are worth infinitely more than you could possibly imagine. ~ Seth Adam Smith

The principle which prompts to save is the desire of bettering our conditiona desire which?comes with us from the womb and never leaves us till we go into the grave. ~ Adam Smith

No key, no tool, no resource is more liberating than love. ~ Seth Adam Smith

Honoring the value of competence and steadfastness requires a generosity of spirit and a curbing of the passion for envy, traits that few people value and fewer still cultivate and acquire. Not until there is more of Smith and less of Hobbes in the human heart, will the majority of people prefer peaceful and boring market relations to the violent and exciting relations between coercer and coerced, predator and victim ~ Thomas Szasz

But poverty, though it does not prevent the generation, is extremely unfavourable to the rearing of children. The tender plant is produced, but in so cold a soil, and so severe a climate, soon withers and dies. ~ Adam Smith

Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society which he has in view. But the study of his own advantage naturally, or rather necessarily, leads him to prefer that employment which is most advantageous to society ... 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 not part of his intention ~ Adam Smith

Only you can decide what you become. ~ Seth Adam Smith

Who Protects the Consumer? "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. 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. Nobody but a beggar chuses to depend chiefly upon the benevolence of his fellow citizens." - Adam Smith, The Wealth of Nations, vol. I, [>] ~ Milton Friedman

When the price of cattle, for example, rises so high that it is as profitable to cultivate land in order to raise food for them as in order to raise food for man, it cannot well go higher. If it did, more corn land would soon be turned into pasture. The extension of tillage, by diminishing the quantity of wild pasture, diminishes the quantity of butcher's meat which the country naturally produces without labour or cultivation, and by increasing the number of those who have either corn, or, what comes to the same thing, the price of corn, to give in exchange for it, increases the demand. The price of butcher's meat, therefore, and consequently of cattle, must gradually rise till it gets so high that it becomes as profitable to employ the most fertile and best cultivated lands in raising food for them as in raising corn. But it must always be late in the progress of improvement before tillage can be so far extended as to raise the price of cattle to this height; and till it has got to this height, if the country is advancing at all, their price must be continually rising. There are, perhaps, some parts of Europe in which the price of cattle has not yet got to this height. It had not got to this height in any part of Scotland before the union. Had the Scotch cattle been always confined to the market of Scotland, in a country in which the quantity of land which can be applied to no other purpose but the feeding of cattle is so great in proportion to what can be applied to other p ~ Adam Smith

Thus bound together, they sheltered the child from the cold, dark night, enveloping him in warmth. ~ Seth Adam Smith

The first duty of the sovereign [is] that of protecting the society from the violence and invasion of other independent societies, [which] can be performed only by means of a military force ~ Adam Smith

The annual produce of the land and labour of any nation can be increased in its value by no other means, but by increasing either the number of its productive labourers, or the productive powers of those labourers who had before been employed. ~ Adam Smith

The typical worker who through the whole of his life ... pursues the idea of a certain artificial and elegant repose which he may never arrive at, for which he sacrifices a real tranquility ... It is this deception which rouses and keeps in continual motion the industry of mankind. ~ Adam Smith

Laissez Faire, laissez passer. Let it be, let it pass. The phrase is not readily translatable. It was widely used by the Physiocrats in urging freedom from government interference and was adopted by Adam Smith. ~ Francois Quesnay

The robot is going to lose. Not by much. But when the final score is tallied, flesh and blood is going to beat the damn monster. ~ Adam Smith

The man who barely abstains from violating either the person, or the estate, or the reputation of his neighbours, has surely very little positive merit. He fulfils, however, all the rules of what is peculiarly called justice, and does every thing which his equals can with propriety force him to do, or which they can punish him for not doing. We may often fulfil all the rules of justice by sitting still and doing nothing. ~ Adam Smith

This great increase of the quantity of work which, in consequence of the division of labour, the same number of people are capable of performing, is owing to three different circumstances; first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many. ~ Adam Smith

Adam Smith had come into my life like a whirlwind.
He'd swept me off my feet. And then, he'd stolen me away. ~ Natasha Knight

Mercy to the guilty is cruelty to the innocent. ~ Adam Smith

A power to dispose of estates for ever is manifestly absurd. The earth and the fulness of it belongs to every generation, and the preceding one can have no right to bind it up from posterity. Such extension of property is quite unnatural. ~ Adam Smith

We always have a choice. Only you can decide what you become. ~ Seth Adam Smith

Wealth, as Mr Hobbes says, is power. But the person who either acquires, or succeeds to a great fortune, does not necessarily acquire or succeed to any political power, either civil or military. His fortune may, perhaps, afford him the means of acquiring both; but the mere possession of that fortune does not necessarily convey to him either. The power which that possession immediately and directly conveys to him, is the power of purchasing a certain command over all the labour, or over all the produce of labour which is then in the market. His fortune is greater or less, precisely in proportion to the extent of this power, or to the quantity either of other men's labour, or, what is the same thing, of the produce of other men's labour, which it enables him to purchase or command. The exchangeable value of every thing must always be precisely equal to the extent of this power which it conveys to its owner. ~ Adam Smith

There is no art which one government sooner learns of another than that of draining money from the pockets of the people. ~ Adam Smith

The difference between the genius of the British constitution, which protects and governs North America, and that of the mercantile company which oppresses and domineers in the East Indies, cannot, perhaps, be better illustrated than by the different state of those countries. ~ Adam Smith

Little else 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. ~ Adam Smith

It was the task of industrial society to destroy all of that. All that "community" implies -- self-sufficiency, mutual aid, morality in the marketplace, stubborn tradition, regulation by custom, organic knowledge instead of mechanistic science -- had to be steadily and systematically disrupted and displaced. All of the practices that kept the individual from being a consumer had to be done away with so that the cogs and wheels of an unfettered machine called "the economy" could operate without interference, influenced merely by invisible hands and inevitable balances and all the rest of that benevolent free-market system guided by what Cobbett called, his lip curled toward Hume and James Steuart and Adam Smith, "Scotch Feelosophy. ~ Kirkpatrick Sale

Humans are no less eager than in the past to dominate, degrade, humiliate, and control - often in order to confirm their own sense of pride and superiority. (Adam Smith wrote in 1776 that this was the main motive for slavery.) But ~ David Brion Davis

As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce. ~ Adam Smith

To superficial minds, the vices of the great seem at all times agreeable. ~ Adam Smith

Must necessarily be small; and those employed in every different branch of the work can often be collected into the same workhouse, and placed at once under the view of the spectator. In those great manufactures, on the contrary, which are destined to supply the great wants of the great body of the people, every different branch of the work employs so great a number of workmen that it is impossible to collect them all into the same workhouse ~ Adam Smith

The part of capitalism that doesn't work for me is when capitalists make decisions in the way that Adam Smith suggested, which is that as long as you do everything in the interest of the investor, you're going to actually make the best decisions for all other stakeholders. I don't happen to agree with that. ~ Danny Meyer

When we're constantly thinking about ourselves, our world shrinks. ~ Seth Adam Smith

A great stock, though with small profits, generally increases faster than a small stock with great profits. Money, says the proverb, makes money. When you have a little, it is often easier to get more. The great difficulty is to get that little. ~ Adam Smith

I am Mother Nature. All of creation bows before me. When people leave their cities and learn of me - walk in my woods, bathe in my rivers, eat of my harvest - they will find healing to their souls. But stray from me and return to the supposed wisdom of men, and they will find themselves in chains once more. ~ Seth Adam Smith

A very poor man may be said in some sense to have a demand for a coach and six; he might like to have it; but his demand is not an effectual demand, as the commodity can never be brought to market in order to satisfy it. ~ Adam Smith

We may consider the sabbath as an alternative to the endless demands of economic reality, more specifically the demands of market ideology that depend, as Adam Smith had already seen, on the generation of needs and desires that will leave us endlessly "rest-less," inadequate, unfulfilled, and in pursuit of that which may satiate desire. ~ Walter Brueggemann

To expect, indeed, that the freedom of trade should ever be entirely restored in Great Britain, is as absurd as to expect that an Oceana or Utopia should never be established in it. ~ Adam Smith

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. ~ Adam Smith

The importation of gold and silver is not the principal, much less the sole benefit which a nation derives from its foreign trade. ~ Adam Smith

The violence and injustice of the rulers of mankind is an ancient evil, for which, I am afraid, the nature of human affairs can scarce admit a remedy. ~ Adam Smith

There's nothing more important in this world than caring for a child. ~ Seth Adam Smith

In public, as well as in private expences, great wealth may, perhaps, frequently be admitted as an apology for great folly. ~ Adam Smith

The natural price, therefore, is, as it were, the central price, to which the prices of all commodities are continually gravitating. ~ Adam Smith

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. ~ Nassim Nicholas Taleb

No paint or dye can give so splendid a colour as gilding. The merit of their beauty is greatly enhanced by their scarcity. With the greater part of rich people, the chief enjoyment of riches consists in the parade of riches, which in their eye is never so complete as when they appear to possess those decisive marks of opulence which nobody can possess but themselves. In their eyes the merit of an object which is in any degree either useful or beautiful is greatly enhanced by its scarcity, or by the great labour which it requires to collect any considerable quantity of it, a labour which nobody can afford to pay but themselves.

Book I, Chapter 11 - Rent of Land, part II ~ Adam Smith

Testing the theory that we have an innate moral sense as proposed by such Enlightenment thinkers as Adam Smith and Thomas Jefferson, Bloom provides experimental evidence that "our natural endowments" include "a moral sense - some capacity to distinguish between kind and cruel actions; empathy and compassion - suffering at the pain of those around us and the wish to make this pain go away; a rudimentary sense of fairness - a tendency to favor equal divisions of resources; a rudimentary sense of justice - a desire to see good actions rewarded and bad actions punished. ~ Michael Shermer

Capitals are increased by parsimony, and diminished by prodigalityand misconduct. By what a frugal man annually saves he not onlyaffords maintenance to an additional number of productive hands?but?he establishes as it were a perpetual fund for the maintenance of an equal number in all times to come. ~ Adam Smith

The world neither ever saw, nor ever will see, a perfectly fair lottery. ~ Adam Smith

I believe each of us is a pilgrim in our own way; we are all lost souls, trying to find our way home. ~ Seth Adam Smith

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. ~ Adam Smith

No complaint ... is more common than that of a scarcity of money. ~ Adam Smith

But they are commonly more distinguished by their superiority in the latter than in the former. Their ~ Adam Smith

Don't give in to the darkness, for there is so much life ahead of you. ~ Seth Adam Smith

The profligacy of a man of fashion is looked upon with much less contempt and aversion, than that of a man of meaner condition. ~ Adam Smith

It was in the eighteenth century that England became what (Adam) Smith called "a nation of shopkeepers" ... (p. 58) ~ Jerry Z. Muller

A bruised apple is not all bad. It still has tremendous potential. ~ Seth Adam Smith

A nation is not made wealthy by the childish accumulation of shiny metals, but it enriched by the economic prosperity of it's people. ~ Adam Smith

Honesty is the only way to fight the inner demons. ~ Seth Adam Smith

A garden is beautiful only when it is filled with people; they determine its beauty ~ Seth Adam Smith

Great ambition, the desire of real superiority, of leading and directing, seems to be altogether peculiar to man, and speech is the great instrument of ambition. ~ Adam Smith

Men, like animals, naturally multiply in proportion to the means of their subsistence. ~ Adam Smith

It is not the actual greatness of national wealth, but its continual increase, which occasions a rise in the wages of labour. It is not, accordingly, in the richest countries, but in the most thriving, or in those which are growing rich the fastest, that the wages of labour are highest. England is certainly, in the present times, a much richer country than any part of North America. The wages of labour, however, are much higher in North America than in any part of England. ~ Adam Smith

Throughout this book I have tried to point out why interest, especially as it has been used by people such as Hume, Smith, Tocqueville, and Weber, is still a very useful concept. One reason why the concept of interest imparts a distinct dynamic to the analysis is that it is mainly interest which makes people takes action. It supplies the force that makes people get up at dawn and work very hard throughout the day. Combined with interests of others, it is a force that can move mountains and create new societies. ~ Richard Swedberg

A man must always live by his work, and his wages must at least be sufficient to maintain him. They must even upon most occasions be somewhat more; otherwise it would be impossible for him to bring up a family, and the race of such workmen could not last beyond the first generation. ~ Adam Smith

The sneaking arts of underling tradesmen are thus erected into political maxims for the conduct of a great empire; for it is the most underling tradesmen only who make it a rule to employ chiefly their own customers. A great trader purchases his good always where they are cheapest and best, without regard to any little interest of this kind. ~ Adam Smith

The wages of labour are the encouragement of industry, which, like every other human quality, improves in proportion to the encouragement it receives. ~ Adam Smith

And even though he's the father of capitalism and wrote the most famous and maybe the best book ever on why some nations are rich and others are poor, Adam Smith in The Theory of Moral Sentiments wrote as eloquently as anyone ever has on the futility of pursuing money with the hope of finding happiness. How do you reconcile that with the fact that no one did more than Adam Smith to make capitalism and self-interest respectable? That is a puzzle I try to unravel toward the end of this book. Besides the emptiness of excessive materialism, Smith understood the potential we have for self-deception, the danger of unintended consequences, the seductive lure of fame and power, the limitations of human reason, and the unseen sources of what makes our lives both so complex and yet at times so orderly. The Theory of Moral Sentiments is a book of observations about what makes us tick. As a bonus, almost in passing, Smith tells us how to lead the good life in the fullest sense of that phrase. ~ Russ Roberts

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. ~ Adam Smith