David Hume Foundations of the Classical School of Economics
Economic Insights FEDERAL RESERVE BANK OF DALLAS VOLUME 8, NUMBER 1 David Hume Foundations of the Classical School of Economics Adam Smith is the founder of the nomic essays] are all clearly written classical school of economics, but eco- and often contain an excellent sum- nomic theorizing predates Smith. The mary and synthesis of the ideas of his philosophic foundations of classical eco- predecessors. In that respect, how- nomics are found in the work of the ever, Cantillon’s Essai sur la nature Scottish Enlightenment thinkers of the du commerce en général, published early to mid-18th century, centered in 1755, but written over twenty years David Hume is primarily known as around the University of Edinburgh. previously, is superior. a philosopher and chronicler of English Notable among these great thinkers and writers is David Hume. It is impossible to know whether history. Less well known is his work on eco- Hume was born in Edinburgh, Smith was more influenced by Can- nomic theory and several political econ- Scotland, on May 7, 1711. The extent to tillon’s book or by personal discussions which Hume influenced Smith, his close with Hume. Schumpeter (1954, 124) omy issues, some of which remain salient friend, has to be inferred from their argues that Hume did influence Smith, today. Studying his economic work respective writings, but the warmth and and Rothbard (1995, 430) suggests that depth of their relationship is incon- Hume was one of Smith’s mentors. enables us to see how he reshaped John testable. Smith said of Hume: O’Brien (1975) gives Hume a large role Locke’s quantity theory of money and how in the development of classical econom- Upon the whole, I have always con- ic thought because of his participation he influenced the great Adam Smith, sidered him, both in his lifetime and in spreading natural law philosophy.
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