Patriotic Exceptions to Free Trade: Adam Smith and Political Judgment

Abstract

Recent United States economic policy has renewed a long-standing debate between protectionism and free trade. This essay examines the lesser-studied views of Adam Smith on the debate concerning liberal trade policy, arguing that while Smith promotes free trade as the “system of natural justice and liberty,” he also acknowledges the need for political judgment in questions of trade. While Smith has many concerns about limiting free trade, he also has a wider understanding of human flourishing in Wealth of Nations beyond opulence that cannot be achieved by strict adherence to any system. This essay argues that Smith understands human flourishing to include the development and exercise of judgment that will allow individuals to satisfy their material needs and extend moral concern to others, especially those within their immediate sphere of influence—their nation. His exceptions to free trade redirect national sentiment away from zero-sum economic transactions between nations or between groups within a nation to support other goals for human flourishing beyond opulence, such as security, a regular administration of law, and special concern for one’s countrymen.