Adam Smith and government

Government leaders have never read Adam Smith. I am sure of it. At least not in full.  In fact, if government leaders had read Smith he would understand that small government means small problems and big government means big problems. Or in the words of our founding fathers ‘the government that governs least governs best’.

Government leaders ares living under a cognitive illusion that Adam Smith pointed out not only in his Wealth of Nations, but also the theory of moral sentiments. government’s illusion is this:  people acting on their own enlightened self interest are contrary to the general good of society as a whole.  Adam Smith pointed out just the contrary. Smith said when you give people freedom, economic freedom which means no or low taxes, because people are good in nature, people will do things unconsciously for the greater good.  government’s idea is people are bad by nature or at least does not trust that people can find their own solutions to problems, and government must take action and make the choice how to spend your money or the greater good will suffer.

Smith’s message is people  will always know how to spend their own  money  better than the government does. government’s message is big government is needed to create a Utopian social state.