Abstract

Poverty, in the mind of Adam Smith , is a serious problem. The solutions he perceives are best discerned through an analysis of his moral theory, his understanding and use of natural law, and the policies he promotes within a framework of free markets. ;Smith argues that the "vast bulk" of humankind can only be held accountable to the moral standards of "propriety." These "mediocre" standards imply observance of the "exact rules of justice." From the virtuous minority we can anticipate altogether loftier standards, including more than a modicum of benevolence. I show that the proprietary majority address the material needs of the poor while the virtuous minority address their more strictly moral needs. ;Natural law, largely adapted from Stoic models, is diffused throughout Smith's work. Though he is not a natural law theorist, Smith uses natural law normatively. Given the "argument by design," the telos of happiness, and an anthropology stressing humankind's frailty, there are only so many ways we both can and ought to address poverty and the poor. ;Political economy, as Smith understands the subject, involves the integration of ethics and economics. Justice, I argue, is the key virtue here, with benevolence serving as a vital supplement. Free markets are the fairest and most efficient means for creating and distributing wealth. Government has a crucial role insofar as it administers justice and addresses needs unmet by free markets. ;I discuss six proscriptions and prescriptions with bearing upon poverty and the poor: monopolies, profits, and political liberty; wages, taxes, and education. Lifting the baseline of poverty, I argue, is a much more likely outcome of Smith's system than eradicating poverty entirely. ;Adam Smith is optimistic in some ways, pessimistic in others. If he is resigned about several features of human nature and the human condition, he is also hopeful that his ideal political economy can address the most pressing material and moral needs of the poor