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Adam Smith on Market and State

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Author Info
David A. Reisman
Abstract

Adam Smith was not a single-minded advocate of a laissez-faire market in which the minimal State had no more than a protective function. Rather, he was a pragmatic social thinker who in each case selected the tool that was the best suited to his meta-objective of rapid economic growth. Contrasting Smith with Murray Rothbard, the paper shows that Smith was a cautious interventionist even as he was a guarded libertarian. The discussion - besides an introduction - is divided into five sections dealing, respectively, with market efficiency, government failure, the protective State, the productive State and public finance.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 154 (1998)
Issue (Month): 2 (June)
Pages: 357-
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(199806)154:2_357:asomas_2.0.tx_2-2

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Find related papers by JEL classification:
B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
P10 - Economic Systems - - Capitalist Systems - - - General

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  1. Elias L. Khalil, 2000. "Making Sense of Adam Smith's Invisible Hand: Beyond Pareto Optimality and Unintended Consequences," Journal of the History of Economic Thought, Taylor and Francis Journals, vol. 22(1), pages 49-63, March. [Downloadable!] (restricted)
  2. Charles G. Leathers & J. Patrick Raines, 2002. "The "Protective State" Approach to the "Productive State" in The Wealth of Nations : The Odd Case of Lay Patronage," Journal of the History of Economic Thought, Taylor and Francis Journals, vol. 24(4), pages 427-441, December. [Downloadable!] (restricted)
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