A Nobel Prize–winning economist reflects on the dire consequences of libertarian economics.

Angus Deaton in the Boston Review:

Smith was not only a great thinker but also a great writer. He was an empirical economist whose sketchy data were more often right than wrong; he was skeptical, especially about wealth; and he was a balanced and humane thinker who cared about justice, noting how much more important it was than beneficence. But the story I want to tell is about economic failure and about economics failure, and about how Smith’s insights and humanity need to be brought back into the mainstream of economics. Much of the evidence that I use draws on my work with Anne Case as well as her work with Lucy Kraftman on Scotland in relation to the rest of the UK.

In her recent book Adam Smith’s America (2022), political scientist Glory Liu reports that in 1976, at an event celebrating the bicentenary of the publication of Smith’s The Wealth of Nations, George Stigler, the eminent Chicago economist, said “I bring you greetings from Adam Smith, who is alive and well and living in Chicago!” Stigler might also have noted that the U.S. economy was flourishing too, as it had been for three decades, and might have been happy to connect the flourishing of Smith and the flourishing of the economy.

More here.