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The sovereign is the person or institution with supreme power over a nation. In most cases, Smith simply uses this term to refer to the government.
Sovereign Quotes in The Wealth of Nations
The The Wealth of Nations quotes below are all either spoken by Sovereign or refer to Sovereign. For each quote, you can also see the other terms and themes related to it (each theme is indicated by its own dot and icon, like this one:
).
Book 4, Introduction
Quotes
Political economy, considered as a branch of the science of a statesman or legislator, proposes two distinct objects; first, to provide a plentiful revenue or subsistence for the people, or, more properly, to enable them to provide such a revenue or subsistence for themselves; and, secondly, to supply the state or commonwealth with a revenue sufficient for the public services. It proposes to enrich both the people and the sovereign.
Page Number and Citation:
Explanation and Analysis:
Book 5, Chapter 1
Quotes
Frequently a man of great, sometimes even a man of small fortune, is willing to purchase a thousand pounds share in India stock, merely for the influence which he expects to acquire by a vote in the court of proprietors. It gives him a share, though not in the plunder, yet in the appointment of the plunderers of India. [...] About the prosperity of the great empire, in the government of which that vote gives him a share, he seldom cares at all. No other sovereigns ever were, or, from the nature of things, ever could be, so perfectly indifferent about the happiness or misery of their subjects, the improvement or waste of their dominions, the glory or disgrace of their administration, as, from irresistible moral causes, the greater part of the proprietors of such a mercantile company are, and necessarily must be.
Book 5, Chapter 2
Quotes
Ground-rents, so far as they exceed the ordinary rent of land, are altogether owing to the good government of the sovereign, which, by protecting the industry either of the whole people or of the inhabitants of some particular place, enables them to pay so much more than its real value for the ground which they build their houses upon; or to make to its owner so much more than compensation for the loss which he might sustain by this use of it. Nothing can be more reasonable, than that a fund, which owes its existence to the good government of the state, should be taxed peculiarly, or should contribute something more than the greater part of other funds, towards the support of that government.
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Sovereign Term Timeline in The Wealth of Nations
The timeline below shows where the term Sovereign appears in The Wealth of Nations. The colored dots and icons indicate which themes are associated with that appearance.
Introduction and Plan of Work
...shaped, these national policies. Finally, Book V will explain how governments (which Smith calls “the sovereign, or commonwealth”) determine their expenses, revenues, and debts.
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Book 1, Chapter 4
...local measurement systems. By changing the amount of metal in each coin, or coin debasing, sovereigns paid off their debts for less than they really owed.
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Book 3, Chapter 4
...expanding the king’s. But they weren’t enough: the feudal lords kept fighting wars, and the sovereign still couldn’t restrain them.
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Book 4, Chapter 7
...export. These policies are actually against the companies’ self-interest. This is because they function as sovereigns in their colonies, so they should want to expand the population and productivity in order...
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Book 4, Chapter 9
The sovereigns in China, Egypt, and India invested in agriculture largely because their revenue came from land...
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Book 5, Chapter 1
...year-round and stop earning revenue if they go to fight in a war, so the sovereign has to pay them to cover the shortfall. As societies and their military technologies develop,...
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...supporting them, but this won’t happen if the same people lead both. Put differently, the sovereign should command the army. This also keeps the sovereign’s power secure, which in turn protects...
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By forcing lawbreakers to pay, sovereigns turn justice systems into a source of revenue. Indeed, judges in Britain were once little...
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As societies become more complex, sovereigns appoint deputies to make judicial decisions. In the same way, governments develop specialized executive and...
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“Part III. Of the Expence of public Works and public Institutions.” The sovereign’s third duty, after defense and justice, is creating the other crucial institutions that would never...
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In countries with no established religion, the sovereign does not have to work with religious leaders. But where there is one, kings must...
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...making incomes of their own, became independent, and turned against the increasingly vain, wasteful clergy. Sovereigns took the opportunity to restrict the church’s power, especially in England and France. Zealous new...
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...the government, including the national defense. This means that, wherever the church is richer, the sovereign is poorer, and the people are less protected. In Switzerland, these tithes cover the full...
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“Part IV. Of the Expence of Supporting the Dignity of the Sovereign.” Political leaders need homes, furniture, food, and clothing, just like everyone else. They must keep...
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“Conclusion.” Expenses for defense and supporting the sovereign’s dignity should come from a nation’s general revenue, because they benefit everyone. But separate court...
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Book 5, Chapter 2
The sovereign can gain income from any property it owns, and by taxing the people.
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“Part I. Of the Funds or Sources of Revenue which may peculiarly belong to the Sovereign or Commonwealth.” The sovereign can own stock, which it can lend or invest. In tribal...
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Sovereigns can also earn interest by lending money and treasure. The Swiss canton of Berne lends...
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Land is comparatively secure, and so most advanced countries fund the sovereign primarily through land rents. In ancient Greece, ancient Rome, and feudal Europe, large, landed estates...
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“Part II. Of Taxes.” In most cases, the sovereign’s general revenue must come primarily from taxes. It can tax rents, profits, wages, or all...
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...taxes are easy to collect, and Britain’s has enriched the country’s landlords (but deprived the sovereign of revenue) because rents have risen significantly, while silver prices haven’t. So constant land taxes...
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...lands, a uniform tax will not change their propensity to rent it out, and the sovereign can reasonably take credit for certain lands becoming desirable places to live (and yielding high...
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Book 5, Chapter 3
...buy luxuries, so they either buy necessities for others or hoard money. So does the sovereign. But in commercial societies, sovereigns and the wealthy buy luxury goods, often to excess. Instead...
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Merchants and manufacturers will lend this money to the sovereign because they generally have access to lots of capital. If they already trust the government...
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