Adam Smith and the Myth of the Founder

Every year around the anniversary of the publication of The Wealth of Nations (1776), economists and commentators repeat a familiar story: Adam Smith—the Scottish moral philosopher—is celebrated as the father, or even the inventor, of economics. In this telling, Smith stands at the beginning of a scientific tradition, single-handedly discovering the principles of the market economy and the virtues of free trade.

But this story is less history than myth.

War Abroad and Authoritarianism at Home

“War is the health of the state.” That phrase, coined by Randolph Bourne, explains why opposition to war is a priority of many libertarians.

War allows governments to increase spending, taxes, and regulations in order to feed the war machine. Wars can justify measures that remain in place long after the wars end. An example of this is income tax withholding that was created to fund World War Two.