Keynes and Smith, Opponents or Allies? Part II: Smith, and Keynes-Smith Parallels

In investigating Keynes–Smith relationships, this paper discusses Smith and the parallels between the mature contributions of these two philosopher-economists. It begins by carefully examining Smith’s economic theory and policy, summarising his core argument in a clarifying syllogism, and exploring his invisible hand remarks. It then turns to the largely unexplored parallels between their major economic works. In theoretical terms, their core arguments have similar structures and analytical characteristics. In policy terms, both proposed new institution-based systems serving individual and social interests, considerable socio-economic restructuring and non-minimalist roles for the state. The paper concludes with a syllogism summarising Keynes’s parallel position, and comparative comments on some recent analyses of Smith’s thought.