Adam Smith Books

When I observe the simplest manufacture—a pin factory, for instance—I find a lesson that reveals the great secret of productivity. Within that small building, ten workers perform distinct tasks: one draws the wire, another straightens it, a third cuts it, and so on. Individually, no worker could mak...

From An Inquiry Into the Nature and Causes of the Wealth of Nations

In the ages before coin and commerce, people exchanged goods directly—a bushel of grain for a pair of shoes, a pot for a piece of meat. But such barter proved painfully limited. The wants of one man seldom matched precisely the surplus of another. The butcher might desire the brewer’s ale, but the b...

From An Inquiry Into the Nature and Causes of the Wealth of Nations

Let us begin with the principle of propriety — the question of when an action is fitting or proper, considering both the actor’s situation and the spectator’s emotions. We do not simply admire actions because they are materially beneficial; we approve them because we can imaginatively enter into the...

From The Theory Of Moral Sentiments

From the sense of propriety grows our understanding of merit and demerit — why we feel gratitude toward benefactors and resentment toward wrongdoers. Sympathy again is the key. We imagine not only the sufferings or benefits experienced but also the intentions that preceded them. Moral judgment thus ...

From The Theory Of Moral Sentiments

When economists first tried to measure global wealth, they assumed that national accounts and international balance sheets told a coherent story. Yet when I began comparing these records, a striking asymmetry emerged: the world’s assets exceeded the world’s liabilities by several trillion dollars. T...

From The Wealth of Nations

To understand the functioning of tax havens, one must move beyond stereotypes of palm trees and numbered accounts. These jurisdictions are the infrastructure of global financial secrecy, their operations supported by legal engineering and international tolerance. At their core lie two mechanisms: th...

From The Wealth of Nations