David Cay Johnston on Adam Smith

“[F]or the past quarter century, policies adopted in the name of Adam Smith... that supposedly strengthen the invisible hand guiding the market, have weighed down our economy while simultaneously stuffing the pockets of those among the rich and powerful who solicited them or... were just standing in the right place at a lucrative time. This is our story, not of one free lunch, but of the many banquets at which billions and billions of your dollars are being served to the richest among us.”

“One of the criticisms I've... gotten is "You're a reporter, what are you doing writing with a moral tone?" ...[Y]es, this is a book about political culture and morality. I cite Adam Smith, the Bible and Andrew Mellon as moral authorities in this book. ...Andrew Mellon says that people are more important than capital and people have to be thought of first, not capital... that's not our culture today. All throughout the Bible, the most frequently denounced evil is taking from the poor to give to the rich. The Bible tells us in both books that your society will come to ruin if you do this.”

“We were promised that... markets would provide solutions. A lot of my book is a defense of markets. The Supreme Court says a market is where independent parties, neither under duress or coercion, and with knowledge of the facts, come to an agreement on a price. That's not what a lot of our new markets do. We now have markets designed to thwart competition... Adam Smith's invisible hand of the market, in which there are lots of sellers, and smart consumers who can compare prices, and this drives prices down... to the lowest level at which businesses can continue to operate. We've replaced that, through government policies, with practices that artificially restrict competition... raise prices... inflate profits; all under the guise of conservatism, and "the markets will solve our problems."”

“[A] lot of people have looked around after 28 years, from when they were promised all these things by Ronald Reagan... [and] realized that for the bottom 90% of Americans incomes are unchanged... even though the country is more than twice as wealthy in real terms, and productivity per capita is up 70%; for every dollar the economy put out back then, per person, in real terms, it puts our $1.70 today. And they've said, "Where's the beef?" ...[T]hat disconnect is ...opening up an opportunity to get people to see what the government has done that's contrary to their interests, because Adam Smith said "Any policy that benefits the majority of the people must be a good thing for the society."”

“Adam Smith, in his lessor known book, The Theory of Moral Sentiments, says that the greatest corruption of our moral sentiments is a tendency to almost worship the rich, and to hold in bad regard people who are poor. ...[O]ur politicians reflect this, even though many of them will tell you... how religious they are. ...[T]hey obviously have not studied their religious texts because, if they did, they would know that (in the case of the Christians, for example) you are supposed to give all that thou hast to the poor. That's a standard I'm not willing to meet, but that's the standard that you are supposed to meet... It's certainly not to be mean and literally deny hungry children food.”