slavery arguments made by Frederick DOUGLASSand
Abraham LINCOLNmade emancipation inevitable.
Smith, Adam (1723–1790) British political,
moral, and economic philosopher
Most famous for his economic book The Wealth of
Nations(1776) and its classical defense of free-market
CAPITALISM, Adam Smith is equally important from a
moral and ethical perspective as a representative of the
SCOTTISH ENLIGHTENMENT.
From a Calvinist CHRISTIANperspective, he viewed
HUMAN NATUREas selfish, vain, and proud, yet capable
of human sympathy to others’ suffering. In his book A
Theory of Moral Sentiments(1759), Smith elaborated
on Francis HUTCHESON’s idea of an innate MORAL SENSE
in humans, which like the natural conscience
described by St. Paul (Romans 2:15) leads people to do
good, at least occasionally, but because sinful self-
interest prevails most of the time, society cannot rely
totally upon people’s benevolent qualities. This leads
to Smith’s idea of using individual selfish behavior in
the marketplace to serve the common good. In a com-
petitive, free-market economy, one must work for oth-
ers, produce high quality goods, and provide good
service to prosper, so economic self-INTERESTcan bene-
fit everyone. The government, then, should ensure free
markets and fair competition and allow the “invisible
hand” of “natural LIBERTYand perfect JUSTICE” to pre-
vail. This is not pure LAISSEZ-FAIREfreedom and nonin-
terference with society, but the careful public
supervision of private FREEDOM. A just state will not
allow monopolies (or MERCANTILISM) or governmental
privilege of any person or group; it will defend the
EQUALITYand RIGHTSof all. Also, the state should pro-
vide those things (such as education) that the private
economy cannot provide for the poor. A good govern-
ment will see that the country is well defended from
external enemies and secure from crime within. Justice
for Smith, like John LOCKE, is the respecting of NATURAL
RIGHTSto life, liberty, and private PROPERTY. Such a MOD-
ERN REPUBLICand commercial economy is more just
than MONARCHYand FEUDALISM.
Adam Smith was educated in Scotland (Glasgow)
and at Balliol College, Oxford. He later taught ETHICS,
jurisprudence (law), and politics at Glasgow Univer-
sity. He is considered a major Modern CONSERVATIVE
advocate of capitalism, limited government, and tradi-
tional moral values.
Further Readings
Campbell, T. D. Adam Smith’ s Science of Morals.Totowa, N.J.:
Rowman & Littlefield, 1971.
Winch, D. Adam Smith’s Politics.Cambridge, Eng.: Cambridge
University Press, 1978.social contract
A major concept in MODERNpolitical thought (HOBBES,
LOCKE, ROUSSEAU) that says that the government of a
state is the result of a social contract or an agreement
of all the members to establish it. This means that the
STATE’s power and legitimate authority come from the
people generally (rather than from God—DIVINE RIGHT
OF KINGS—or a few people—ARISTOCRACY, oligarchy).
Any state not based in such voluntary CONSENTof the
governed is illegitimate, illegal, and a TYRANNY, accord-
ing to this social-contract view. Primarily developed by
British liberal thinkers Thomas Hobbes, John Locke,
and John Stuart MILL, this social-contract theory
underlies the U.S. CONSTITUTIONand American DEMOC-
RACY. Thomas JEFFERSON’s famous DECLARATION OF INDE-
PENDENCE and James MADISON’s U.S. Constitution
express the social-contract theory of U.S. government.
The reasons for “free” individuals in a STATE OF
NATUREforming a social contract vary according to the
thinkers describing it. For Hobbes, the threat of ANAR-
CHYand violence lead reasonable people to form a state
to protect their lives; for Locke, a rational people cre-
ate a government to preserve their NATURAL RIGHTS(life,
liberty, and PROPERTY) from criminal invasion. These
purposes of “government by consent of the governed”
then limit what the state can do. If the state violates
citizens’ rights, it breaks the contract. The people can
replace it.
Social-contract theory emerges from the INDIVIDUAL-
ISMof Protestant CHRISTIANITY. The REFORMATIONreli-
gion that believed in the individual’s direct, personal
relationship to God soon spread to political ideas of
consensual government. So, John CALVINand Martin
LUTHERformed the theological basis of Modern REPUB-
LICANISM. Earlier thinkers hinted at this idea of repre-
sentative government (CICERO, SENECA), but Modern
social-contract theory did not appear until the end of
the MIDDLE AGES(WILLIAM OF OCKHAM,Francisco SUAREZ,
JOHN OF PARIS). Contemporary social-contract thinkers
include John RAWLSand Robert NOZICK.
Now the accepted rationale for legitimate, demo-
cratic government, social-contract theory remains an
unrealized ideal in many countries. Argument oversocial contract 277