Introduction

This essay concentrates on the theory of economic policy, especially the economic role of government, to be found in Adam Smith’s works, both his own publications and the notes taken down by students from his lectures on law and government. Considered first is the leading interpretation or ostensible application of his purported ideas that, in my view, is nothing less than the economic ideology or economic belief system of western civilization. It is sometimes called laissez-faire or noninterventionism, notably the ideology largely embraced by the discipline of economics and, within it, especially the Chicago School, notably Milton Friedman, and the companion ideas of Friedrich Hayek.

Laissez-faire

Laissez-faire is generally used in three contexts: minimization of legal change; a particular vision of an economy; and legal change to bring about that particular vision. Discussion here focuses on the first.