Publication Date

6-14-2025

Document Type

Working Paper

Advisor

Professor John Hall

Journal of Economic Literature Classification Codes

B1, B3, B12, H1

Key Words

Adam Smith, Economic Institutions, Economic Thought, Laissez-faire, Market Regulation

Abstract

As the noted author of a tome titled An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith [1776] is often cited as a proponent of Laissez-faire capitalism. However, the reality is that his writings offer a more nuanced vision that includes suggesting constraints on economics activity, while encouraging the importance of what he views as state or public institutions. In Smith's writings we find that he speculates that for a perfectly functioning market system to operate effectively depends upon the enforcement of contracts, the protection of property rights, and the maintenance of justice. These, along with other key ideas found in Smith’s writings, would later be reflected in the U.S. Constitution that would be promulgated in 1787, ratified by Congress in 1788, and rendered operational in 1789. Although Smith did not live to see this document’s ratification; nevertheless, this inquiry argues that the economic system established by the U.S. Constitution closely aligns with Smith’s vision expounded some decades earlier in his Inquiry published in 1776, and would have earned his endorsement.

Rights

© 2025 by Cole Soliz

Licensed under CC BY-ND 4.0

Persistent Identifier

https://archives.pdx.edu/ds/psu/44034

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