Economists -- Great Britain -- Biography; Smith, Adam, 1723-1790
As a politician Smith was doubtless attracted by the prospect of
introducing a strong democratic and republican strain into parliament,
though he pretends to think that the balance of the constitution would
not be affected. He points out also that the constitution would be
completed by such a union, and was imperfect without it, for “the
assembly which deliberates and decides concerning the affairs of every
part of the empire, in order to be properly informed, ought certainly to
have representatives from every part of it.”[32] In the last chapter of
the _Wealth of Nations_ he describes the project as at worst “a new
Utopia, less amusing, certainly, but no more useless and chimerical than
the old one,” and shows how the British system of taxation might be
extended along with representation in parliament to the colonies in such
a way as to produce a great addition to the imperial revenue and a large
permanent surplus for the redemption of debt. In this way the debt could
be discharged in a comparatively short period, and as revenue would be
continually released, the most oppressive taxes could be gradually
reduced and remitted. By this prescription “the at present debilitated
and languishing vigour of the empire” might be completely restored.
Labourers would soon be enabled to live better, to work cheaper, and to
send their goods cheaper to market. Cheapness would increase demand, and
the increased demand for goods would mean an increased demand for the
labour of those who produced them. This again would tend both to raise
the numbers and improve the circumstances of the labouring poor. Lastly,
as the consuming power of the community grew, there would be a growth in
the revenue from all those articles of consumption which remained
subject to taxation.
The plan of an imperial parliament and imperial taxation could not be
realised. Smith himself saw that the economic and constitutional
objections were great, though “not unsurmountable.” Upon one point,
however, he was clear. If it were impracticable to extend the area of
taxation, recourse must be had to a reduction of expenditure; and the
most proper means of retrenchment would be to put a stop to all military
outlay in and on the colonies. If no revenue could be drawn from the
colonies, the peace establishments “ought certainly to be saved
altogether.” Yet the peace establishments were insignificant compared
with what wars for the defence of the colonies had cost. But for
colonial wars the national debt would have been paid off. It was urged
that the colonies were provinces of the British Empire:—
Public-domain text, read in full here on John Shaqi.
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