Adam Smith
1723–1790, Scotland (the Scottish Enlightenment: Kirkcaldy, Glasgow, Edinburgh)
Equity Socialism for the Few, Taxation for the Many
When governments buy slices of mines, reactors, and chip sales in the name of creativity, they quietly turn taxpayers into unwilling speculators and fragment the very markets on which prosperity rests.
The jest that one might be “the greatest communist in history” has been followed, we are told, by a very serious kind of public investment. The administration has underwritten nuclear reactors in return for a share of dividends above a lofty threshold; it has taken small ownership stakes in a foreign mining firm and its American project; it has even claimed a percentage of the sales of advanced chips exported abroad. All this is commended to the public as a “creative solution” to a crippling debt. The language is fresh, the devices are novel, yet the substance is familiar: the state is becoming a sleeping partner in particular businesses, with other people’s money on the line.
Read the essay