Smith's Influence on Classical Liberalism
Smith's ideas shaped the liberal tradition from the American Founders through John Stuart Mill, though each generation read him selectively.
Smith and the American Founding
The Wealth of Nations was published in the same year as the Declaration of Independence, and its influence on the American experiment was substantial if sometimes indirect. Benjamin Franklin had met Smith in Scotland and shared his views on colonial trade restrictions. Thomas Jefferson listed The Wealth of Nations among the essential books for understanding political economy. Alexander Hamilton, while disagreeing with Smith's free trade prescriptions, engaged seriously with his analysis in crafting the Report on Manufactures.
The Constitution's commerce clause, which aimed to prevent states from erecting trade barriers against each other, reflected Smith's argument that free internal trade was essential to prosperity. James Madison's concern with faction in Federalist No. 10 echoed Smith's warnings about merchant interests capturing government policy.
