Adam Smith is history’s most famous economist, yet most people know precious little about what he wrote. But 2026 provides an excellent opportunity to overcome some of that oversight. That is because the semiquincentennial of America’s birth this summer coincides with that of Smith’s “Wealth of Nations,” published just under four months before the Declaration of Independence, which shared its deep commitment to liberty.
One part of Smith’s insights into the blessings of liberty can be seen in his articulation of how the “invisible hand” of market interactions can coordinate a society based upon liberty — i.e., private property rights and voluntary exchange — more effectively than can the coercive power of the state. As he put it, “By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.” But he also offers a complementary insight into what could be called the “visible foot” of government interventions into markets, claiming to benefit society. In his words, “I have never known much good done by those who affected to trade for the public good. It is an affectation.”
The coincidence in time between “Wealth of Nations” and the Declaration of Independence is far from the only reason to reconsider Smith’s insights, because on America’s 250th anniversary, our government is exponentially larger and more arbitrarily intrusive than when he wrote — i.e., it has given a much larger role to its visible foot and a much smaller role to society’s invisible hand — giving up much of what greater liberty could provide for Americans.
Consider what Smith said of the clumsy visible foot of government.
[Governments are] … without exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will...
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