ADAM SMITH ON EDUCATION

Abstract

Most modern economists can be classified as liberals who believe that the state should not enforce preferences since preferences are not rational. In contrast, the father of modern economics, Adam Smith, was a liberal perfectionist: He believed that some ends are better than others. This position follows from Smith's contention that economic institutions, such as the division of labor, create different characters and preferences among what would otherwise be a homogeneous population. If one wishes to evaluate these institutions, then, it cannot be on the basis of whether they satisfy the very preferences they create. Education was a case in point. There did not seem to be a market for educating the poor, but such an education would have been valuable because it would, Smith thought, counteract the torpor created among workers by the minute division of labor. Therefore, he argued, government provision of education may be called for. The rationale here is paternalistic, yet liberal in the sense that the type of character that was to be formed by education was not passive and thoughtless, but was, rather, autonomous.