AdamSmithWorks Teaching Resources

Adam Smith opens Book IV of Wealth of Nations with a history and critique of Colonialism. He compares the different circumstances of the open land of the Americas to the ancient Greek and Roman geographic expansion that was motivated by population growth. He remarks on the tremendous distance between the colonies in America and Europe which placed them less in the view and less in the power of their mother country.
 

Plenty of good land, and liberty to manage their own affairs their own way, seem to be the two great causes of the prosperity of all new colonies. IV.vii

Smith details the rich “exclusive trade” relationship that grew between the American colonies and Europe increasing both enjoyments and industry. He describes the monopoly power Great Britain holds in trading with American consumers, a captive market for British exports. Unique products such as tobacco were imported and then exported to global markets. The tremendous expense for Britain to fortify its defense of this tricky monopoly dominated Smith’s cost-benefit analysis of this colonialism project.  

At the very end of the final chapter of Book V of Wealth of Nations, Smith admonishes the British government with this critique: 

The rulers of Great Britain have, for more than a century past, amused the people with the imagination that they possessed a great empire on the west side of the Atlantic. This empire, however, has hitherto existed in imagination only. It has hitherto been, not an empire, but the project of an empire; not a gold mine, but the project of a gold mine; a project which has cost, which continues to cost, and which, if pursued in the same way as it has been hitherto, is likely to cost, immense expence, without being likely to bring any profit; for the effects of the monopoly of the colony trade, it has been shown, are, to the great body of the people, mere loss instead of profit. V.iii.
 

Smith worked on this monumental book for a decade during the escalating tensions between Britain and the colonies. His great work was published in 1776, too late to have influenced British rulers, as the date coincided with the Declaration of Independence. There is however, evidence that Smith’s first work, Theory of Moral Sentiments was read by some Founding Fathers. Smith  was prescient about what would become of the future United States of America:
 

From shopkeepers, tradesmen, and attornies, they are become statesmen and legislators, and are employed in contriving a new form of government for an extensive empire, which, they flatter themselves, will become, and which, indeed, seems very likely to become, one of the greatest and most formidable that ever was in the world. 
 

We hope that our collection that includes readings from Wealth of Nations, related articles and lessons enlivens classroom inquiry and discussion about colonialism, liberty, and Adam Smith. Stay tuned for next month’s topic and let us know if we can better serve you!

  ~ The AdamSmithWorks Educational Resource Team