Category Archives: Uncategorized

ADAM SMITH’S SECOND EXCEPTION TO FREE TRADE “The second case, in which it will generally be advantageous to lay some burden upon foreign for the encouragement of domestic industry is, when some tax is imposed at home upon the produce … Continue reading →

ADAM SMITH’S FIRST EXCEPTION TO FREE TRADE “There seem, however, to be two cases in which it will generally be advantageous to lay some burden upon foreign for the encouragement of domestic industry.” (Wealth of Nations, IV.ii.23) As I mentioned … Continue reading →

President Trump signed an official memorandum on Thursday calling for “fair and reciprocal” trade tariffs on all major U.S. trading partners (you can read the presidential memo for yourself here), but as per my previous post, does Trump’s executive action … Continue reading →

(THE REAL ADAM SMITH PROBLEM) “There seem, however, to be two cases in which it will generally be advantageous to lay some burden upon [imports] for the encouragement of domestic industry.” (Wealth of Nations, IV.ii.23) Thus far (see here, here, … Continue reading →

“Is any resentment so keen as what follows the quarrels of lovers, or any love so passionate as what attends their reconcilement?” (Adam Smith, The History of Astronomy, Section 1) Was Adam Smith speaking from personal experience when he posed … Continue reading →

THE IMMORTAL ADAM SMITH, PART 7 To prohibit by a perpetual law the importation of foreign corn and cattle is in reality to enact that the population and industry of the country shall at no time exceed what the rude … Continue reading →

THE IMMORTAL ADAM SMITH, PART 6 “The natural advantages which one country has over another in producing particular commodities are sometimes so great that it is acknowledged by all the world to be in vain to struggle with them. By … Continue reading →

THE IMMORTAL ADAM SMITH, PART 5 In my previous post in this series, we saw that Adam Smith’s famous “invisible hand” mechanism in the economic arena will work only if two key conditions are met: Condition #1: Owners of capital … Continue reading →