Changes

Hume was one of the first thinkers to promote the idea of true “free trade,” unbounded by borders, tariffs, or other taxes on imports. He argued that foreign trade increases the stock of labor in a nation, which can then be used for public works projects. To Hume, imports were good as they were a sign of wealth in a nation and that increased imports usually lead to more luxury items, which ultimately meant that the people would be happier. Finally, David Hume thought that under a truly free economy, trade imbalances would not be a problem and that the amount of gold and silver leaving the country in such a system would be negligible because foreign investment would be promoted due to the lack of tariffs. <ref> Haar, p. 236</ref>

Although Hume recognized that sometimes wars were inevitable, he believed that they were for the most part terrible for economic progress. Hume argued that any benefits gained from territorial conquest were often mitigated by the fact that wars usually disturb free commerce, create lazy laborers, and are almost always expensive and increase the national debt. <ref> Haar, p. 234</ref> Ultimately, the entire concept of the empire itself was financially ruined some and for that reason alone should be abolished, Hume advocated. He believed that empires were usually beneficial to the mother country in the beginning, but almost always became financial burdens that hurt the overall economy. <ref> Haar, p. 236</ref> David Hume’s revolutionary economic ideas resonated with many Enlightenment thinkers, no more so than his fellow Scotsman, Adam Smith.

====Adam Smith and the Enlightenment====

Adam Smith (1723-1790) synthesized and improved on many of David Hume economic theories to create an economic worldview that would influence global economics until the present. In Smith’s most famous work, <i>The Wealth of Nations</i>, and in his earlier yet no less important, <i>The Theory of Moral Sentiments</i>, he argued that economic freedom was intertwined with political freedom and that many societal benefits actually came from greed, which was a process he referred to as the “Invisible Hand.” Smith’s philosophy was extremely optimistic, as he argued people were inherently good and that economically driven men would seek to better themselves while simultaneously promoting the welfare of society. <ref> Coker, p. 140</ref> But what made Smith a revolutionary thinker was his strident opposition to the old economic order.

Although Smith, like Hume, was a pragmatist and knew that wars were inevitable and that more powerful countries often rule over the weak, he opposed colonialism just for the sake of it. Smith wrote much of his works during the decades leading up to and during the American Revolution, which he often cited as an example of the follies of colonialism. He argued that colonialism was extremely costly for many reasons, including the fact that the government subsidized companies carrying out the efforts were often inefficient and could rely on government bailouts. <ref> Muthu, p. 191</ref> Smith believed that it was pointless for the mother country to subsidize such affairs:

====Conclusion====