I. INTRODUCTION
As noted in the book Adam Smith and Rousseau: Ethics, Politics, and Economics, research on the connection between Smith and Jean-Jacques Rousseau has proliferated over the past fifteen years. Studies have explored their intellectual relationship from various angles, including their assessments of commercial society as well as their similarities and differences in aspects such as autonomy, civic republicanism, the division of labor, economics, equality and inequality, human nature and sociability, morality and virtue, philosophy, politics, progress, self-love, and theater (Paganelli et al. Reference Paganelli, Rasmussen and Smith2018, p. 8). Other studies have examined their relationship through lenses such as sincerity and authenticity, jealousy, and the general will (McHugh Reference McHugh, Grace and Kelly2019; Pignol and Walraevens Reference Pignol and Walraevens2017; Stimson Reference Stimson, Farr and Williams2015). Among previous studies, three monographs focus explicitly on the connection between Smith and Rousseau. These works concern Rousseau’s critique of commercial society, Smith’s defense of it, and the nature of human selfhood and its challenges (Rasmussen Reference Rasmussen2008; Hont Reference Hont, Kapossy and Sonenscher2015; Griswold Reference Griswold2017). Taken together, these results present a complex picture of the relationship between Smith and Rousseau.
A central theme in this picture is Rousseau’s influence on the shaping of Smith’s economic and social theories.Footnote 1 Smith’s Letter to the Edinburgh Review has been viewed as an intellectual confrontation between an astute observer of early capitalism and a fierce critic (Ignatieff Reference Ignatieff1984, p. 109). Dennis Carl Rasmussen contends that Rousseau was a major critic of commercial society and the Enlightenment. Although Smith sympathized with many of Rousseau’s critiques, he remained a staunch defender of commercial society (Rasmussen Reference Rasmussen2008, p. 20). Moreover, this defense is already laid out in Smith’s Letter to the Edinburgh Review, especially in his critique of the moral and political flaws of pre-commercial societies (Rasmussen Reference Rasmussen2006, pp. 620–621). Likewise, Christopher J. Berry argues that Smith recognized Rousseau as a key figure in European political thought, particularly within the tradition of civic humanism. Opposing civic humanism, Smith links liberty to opulence, thereby vindicating the modern world of commerce (Berry Reference Berry2018). Shannon C. Stimson (Reference Stimson, Farr and Williams2015, p. 351) maintains that Smith responded to Rousseau’s general will solution with a theory of the moral sentiments and an empirical and conjectural history of humans that clarifies the generation of commercial sociability. One of the most ambitious attempts is Istvan Hont’s Politics in Commercial Society, which examines their similarities and differences from the standpoints of moral psychology, history and the theory of government, and political economy. Hont (Reference Hont, Kapossy and Sonenscher2015, p. 22) argues that both Smith and Rousseau were influenced by Montesquieu and shared a common ambition. They developed similar plans for grandiose projects in political thought. Ultimately, Hont portrays Rousseau as much closer to Smith than previous scholars have suggested.
Prior studies have undoubtedly laid the foundation for the reasoning of the current study but have overlooked Rousseau’s emphasis on the politics of land in the Second Discourse ([1755] Reference Rousseau and Gourevitch2019) and the influence on Smith of Rousseau’s political-economic imagination surrounding land. Michael Ignatieff (Reference Ignatieff1984, pp. 22, 116) observes Rousseau’s attempt to resist the tide of history through a utopian republican model and Smith’s responses to Rousseau’s critiques of private property and inequality. However, Ignatieff only touches upon Rousseau’s views on inequality and republican ideals without noting the role of land. Compared to Ignatieff, Hont brings Rousseau closer to becoming a commercial theorist. In Hont’s view, Rousseau desired a commercial society in which everything would grow in a balanced way, and agricultural and industrial labor would be properly valued and exchanged on a fair basis, leading to just terms of trade between the two economic sectors (Hont Reference Hont, Kapossy and Sonenscher2015, pp. 101–104). Hont’s interpretation is strongly revisionist and has faced significant criticism.Footnote 2 For the purposes of this study, the key limitation of Hont’s analysis is his failure to recognize the central role of land in Rousseau’s political-economic thought. By portraying Rousseau as a theorist of balanced growth between agriculture and industry, akin to Smith, Hont neglects the significance of land in Rousseau’s framework and Smith’s efforts to move beyond Rousseau’s land-centered political and economic imagination.Footnote 3 On this point, Berry (Reference Berry2018, pp. 327–329) addresses the land issue only briefly, noting that the civic humanist riposte to the challenge of commerce was to reinvoke the image of an agrarian, independent republicanism. By contrast, Smith’s defense of commercial modernity hinges on his historical analysis of the decline of feudalism. However, Berry does not develop this analysis further.
A closer examination of Rousseau’s land politics yields insights in several aspects. First, we can incorporate Smith’s discussion of the origin of landed property, rather than private property in the general sense, as well as his arguments on the poor, the rich, and the unequal distribution of land among them, into the broader narrative of responding to Rousseau. Second, the influence of certain elements of Rousseau’s Second Discourse on Smith’s thoughts becomes clearer. Scholars have long recognized that Rousseau’s Second Discourse (Rousseau [1755] Reference Rousseau and Gourevitch2019; hereinafter SD) inspired Smith’s thinking. It is widely believed that the famous passage containing the “invisible hand” in Smith’s The Theory of Moral Sentiments (Smith [1759] Reference Smith, by and Macfie1982; hereinafter TMS) is a response to Rousseau. However, these interpretations often treat this response within a generalized framework of inequality, without noting that this famous passage specifically addresses land issues. This oversight led to a failure to fully appreciate Smith’s response, which was ultimately refined through his comparative analysis of land tenure systems in ancient Rome, feudal society, and commercial society. Taking these elements into account allows us to view the “invisible hand” in TMS as a phase in Smith’s evolving thought. Third, focusing on land politics enables us to see more clearly the differences and similarities between Smith and Rousseau as well as the efforts Smith made to break away from Rousseau’s land-centered political vision.
II. ROUSSEAU ON THE ORIGIN AND CONSEQUENCES OF PRIVATE LAND OWNERSHIP
The emergence of private land ownership was a landmark event in Rousseau’s account of inequality. Prior to this, the scale of inequality was very limited and primarily reflected in natural inequality between individuals. However, with the advent of private land ownership, inequality increased dramatically, fundamentally affecting human relationships. At the beginning of the second part of the Second Discourse, Rousseau famously declares: “The first person who, having enclosed a plot of ground, bethought himself to say this is mine, and found people simple enough to believe him, was the true founder of civil society” (SD, p. 165).
Nevertheless, the emergence of landed property was not sudden. As Rousseau points out, the corresponding concept of property did not instantly emerge in human minds but rather developed throughout a long process. In this process, changes in the human environment and changes within human beings themselves interacted to play their part.Footnote 4 Frederick Neuhouser (Reference Neuhouser2014, p. 78–79) emphasizes the vital role of amour-propre in the origin and expansion of human inequality. He points out that while amour-propre alone is insufficient to generate inequality, it remains the principal cause and a necessary condition of social inequalities; amour-propre demands that inequality be satisfied. However, although Neuhouser acknowledges the material and non-psychological factors in the process of generating inequality, his perspective still overemphasizes the role of this psychological factor by relegating other factors to “auxiliary conditions.” As Rafeeq Hasan (Reference Hasan2018, p. 891) points out, one could argue that private property emerged for other reasons related to changes in modes of production, and that the desire to express one’s worth in terms of greater property is produced in and through that material change. Céline Spector (Reference Spector2019, pp. 33–34) notes more succinctly that, for Rousseau, material and institutional factors do not only serve a pre-existing drive (amour-propre); even if Rousseau does not subscribe to a theory of economic conditions as commanding institutional superstructures, he works on the dialectic of nature and culture via modes of subsistence.
Rousseau identifies changes in the modes of production—namely, the emergence of agriculture and metallurgy—as a major cause of the establishment of land ownership. The emergence of metallurgy and agriculture introduced significant divisions of labor and the exchange of iron tools for food. At the same time, Rousseau notes: “From the cultivation of land, its division necessarily followed; and from property, once recognized, the first rules of justice necessarily followed: for in order to render to each his own, each must be able to have something” (SD, p. 173). Here, we see that Rousseau highlights the private appropriation of land rather than other objects. This is closely related to what Neuhouser (Reference Neuhouser2014, p. 97) observes: Land, unlike products grown on it, is a means of production in Marxist terms, and as a fundamental prerequisite of production, land is a significant source of social power. According to Rousseau, land serves both the basic needs of survival and the human desire for amour-propre, a means of asserting one’s worth. His emphasis on landed property as a defining moment in the history of inequality is tied to the inherent scarcity of land. While Rousseau acknowledges that human labor can improve the land and transform forests into lush fields, land has the important attribute of being non-renewable.Footnote 5
Rousseau observes that the initial private appropriation of land was closely linked to individual labor and natural talent, which gave it legitimacy. He states that
it is not clear what more than his labor man can put into things he has not made in order to appropriate them. Since labor alone gives the cultivator the right to the produce of the land he has tilled, it consequently also gives him a right to the land, at least until the harvest, and thus from one year to the next, which, since it makes for continuous possession, is easily transformed into property. (SD, p. 174)
However, at this point, Rousseau’s similarity to John Locke is superficial. For Locke, labor in the state of nature established a legitimate right to private property, which the formal government must protect. Moreover, the introduction of money quickly broke the natural limits of land ownership. In contrast, Rousseau believes that while labor can justify claims to the products of work, it does not provide an eternal claim to the land itself (Pierson Reference Pierson2013, p. 416).Footnote 6 More importantly, there are other forms of entitlements to the same land. Rousseau notes:
Even those whom industriousness alone had enriched could scarcely base their property on better titles. No matter if they said: It is I who built this wall; I earned this plot by my labor. Who set its boundaries for you, they could be answered; and by virtue of what do you lay claim to being paid at our expense for labor we did not impose on you? Do you not know that a great many of your brothers perish or suffer from need of what you have in excess, and that you required the express and unanimous consent of Humankind to appropriate for yourself anything from the common subsistence above and beyond your own? (SD, p. 177)
Rousseau admits that the rich might be industrious while the poor might be idle, yet he does not believe this suffices as a justification for private land ownership. Those who were denied access to the land might have a legitimate objection to appropriation, as they are left without the means to sustain themselves (Spector Reference Spector2019, p. 32). Furthermore, regarding the expansion of land inequality and its attendant adverse consequences, the rich bear a greater responsibility due to their other actions. First, the wealthy quickly changed their strategies, ceasing to work on the land themselves and instead exploiting the labor of others.
The rich, for their part, had scarcely become acquainted with the pleasure of dominating than they disdained all other pleasures, and using their old Slaves to subject new ones, they thought only of subjugating and enslaving their neighbors; like those ravenous wolves which once they have tasted human flesh scorn all other food, and no longer want anything but to devour men. (SD, p. 176)
Here, the rich’s possession of the land expands into control over people. Second, the wealthy solidify their dominance through a specious social contract (Delaney Reference Delaney2009, pp. 62–63), transforming dubious or contested property claims into a positive private property system.
According to Rousseau, the wealthy hold an advantage in conflicts brought about by private land ownership. Although they faced many adversaries, they were more strategic and far-sighted. They turned their enemies into protectors, instilled new beliefs in them, and imposed new regulations for them. In contrast, the poor, being short-sighted and unaware of long-term political consequences, focused only on short-term benefits and relied on the wealthy to mediate internal conflict. These factors deceive the poor into accepting a specious social contract, which institutionalizes asymmetries in power rooted in economic inequality (Neuhouser Reference Neuhouser2013, p. 210). By referring to the impartial rule of law and security of every person, this contract appears fair, but its true aim was to establish such order as was necessary to preserve the estates of some persons at the expense of others (Wokler Reference Wokler2001, p. 52).
For Rousseau, this specious contract and land-based property system had profound societal consequences.
Such was, or must have been, the origin of Society and of Laws, which gave new fetters to the weak and new forces to the rich, irreversibly destroyed natural freedom, forever fixed the Law of property and inequality, transformed a skillful usurpation into an irrevocable right, and for the profit of a few ambitious men henceforth subjugated the whole of Mankind to labor, servitude and misery. (SD, p. 178)
Because of the various adverse outcomes of the emergence and establishment of land inequality, the specious social contract has not brought about social peace. Instead, it has caused social contradictions to continuously intensify beneath the surface and has led the upper classes to resort to increasingly extreme political means to maintain their vested interests.
According to Rousseau, the establishment of laws and private property was the first stage in the progression of inequality. The creation of administrative officials marked the second stage. In the third stage, legitimate power is transformed into despotic power. The distinction between the poor and the rich is established in the first stage, the distinction between the strong and weak is recognized in the second stage, and the status of masters and slaves is solidified in the third stage. At this point, inequality reaches its peak.
In sum, Rousseau’s approach to inequality is complex. He not only analyzes the causes of inequality in human nature, the human condition, and its consequences but also critiques it from a normative standpoint. Notably, in the Second Discourse, Rousseau’s discussion of inequality consistently revolves around land. This is undoubtedly related to the fact that Rousseau lived in the time of the pre-industrial revolution, when agriculture still played a crucial role in the European economy. This may be related to Rousseau’s intellectual atmosphere as well. As Mark Hulliung (2019, p. 12) points out, in the 1750s, when Rousseau was in contact with Jean Le Rond d’Alembert, Denis Diderot, and Paul Thiry, Baron d’Holbach, commercial topics were rarely the main focus of their debates.
However, Rousseau is not entirely oblivious to commerce. In the Second Discourse, he mentions the exchange between the two economic sectors and how some people discovered the secret to obtain more food through iron. However, this explanation stops at least in the main text. He does not further analyze the historical relationship between this new source of wealth—commerce—and inequality.
Hont (Reference Hont, Kapossy and Sonenscher2015, p. 102) asserts that Rousseau sought balanced economic growth between town and country, industry and agriculture. He found support for this view in the notes in the Second Discourse. However, this interpretation is debatable. In Note X, which Hont highlights, Rousseau criticizes luxury, contending that it exacerbates the suffering of the poor under the guise of helping them. In Rousseau’s view, society and luxury give rise to the liberal arts, mechanical arts, commerce, and literature, all of which enrich and ruin states. They have also drastically altered the relationship between farmers and land.
As industry and the arts spread and flourish, the scorned farmer, weighed down by taxes needed to support Luxury, and condemned to spend his life between labor and hunger, abandons his fields to go seek in the Cities the bread he should be bringing to them. The more capital cities strike the stupid eyes of the People as admirable, the more must one bemoan seeing the Countryside abandoned, the fields lie fallow, and the highways overrun by unfortunate Citizens turned beggars or thieves and destined someday to end their misery on the rack or a dunghill. (SD, p. 208)
Rousseau addresses the imbalance between city and country, but his aim is not to remedy it. He condemns commerce, luxury, and cities, arguing that they exacerbate—or at least fail to improve—the conditions of rural residents and the poor who flee to cities.
From the above discussion, it is clear that for Rousseau, the privatization of land was a landmark event in the origin of human inequality; it brought about class conflict and the division of interests in the economic and political spheres, leading to the internal division of the mind and the emergence of corresponding political superstructures and ideologies. The rise of commerce and cities worsened the consequences of land politics. Importantly, for Rousseau, land privatization is not a one-time event whose effects diminish over time; rather, it is an ongoing structural issue in European politics. As Hont (Reference Hont, Kapossy and Sonenscher2015, p. 52) notes, for Rousseau, the inequality of private property tends to grow and disrupt political arrangements based on it. In the Second Discourse, Rousseau does not identify any factors that could hinder the continued expansion and impact of the injustice of land privatization in human history. Moreover, the rich continuously use political means to maintain unjustly acquired wealth; this conspiracy continues to this day. As Ignatieff (Reference Ignatieff1984, p. 115) points out, for Rousseau, inequality is the inertial direction of history.
After the Second Discourse, Rousseau continues to hold these views on commerce and land in his other texts. His skeptical stance toward commerce does not fundamentally change. He especially rejects doux commerce on the grounds that it fosters inequality (Williams Reference Williams2024, p. 142). His analysis of land issues is more complex. On the one hand, he seems to have continued the abovementioned analysis by generalizing the issue of land inequality to the matter of economic inequality and regarding the latter (rather than just the former) as a problem faced by modern politics.Footnote 7 On the other hand, land, as an important means of production, still occupies a significant place in Rousseau’s discussions of political economy after the Second Discourse. Hence, Rousseau recommends measures to limit the further expansion of land inequality or inequality in general. Whether in Considerations on the Government of Poland, Project for the Constitution of Corsica (which embodies Rousseau’s specific constitutional designs), or The Social Contract (which discusses general political principles), this theoretical orientation is clear. Notably, the title of chapter IX of book I of The Social Contract is “Of Real Property”—not property in general.
Overall, after the Second Discourse, Rousseau shifts more from critique to construction in his various political and economic discourse (Rosenblatt Reference Rosenblatt1997, pp. 80–81). However, he continues to adhere to the tone of the Second Discourse. He underscores the negative outcomes of economic inequality and commerce. On this basis, he seeks not to improve the conditions of ordinary people and defend their freedom in commercial cities but instead to establish a closer connection between them and land or agriculture by imposing restrictions on private property.
The issue of land is also important to Smith. In his view, landed property and the accumulation of capital mark the end of the phase when laborers exclusively enjoy the fruits of their labor. As Smith observes in The Wealth of Nations ([1776] Reference Smith, by and Skinner1981; hereinafter WN), “As soon as land becomes private property, the landlord demands a share of almost all the produce which the laborer can either raise, or collect from it” (WN I.viii.6, p. 106). From the perspective of modern European history, feudalism is its precursor, and feudalism is a political-economic system centered on land ownership. Even in the commercial society envisioned by Smith, land and agriculture remain the core issues. Smith believes that wealth, fixed and embodied in the cultivation and improvement of land, is the most stable and reliable form of wealth. Additionally, in Smith’s time, much of Britain’s wealth resided in its aristocracy, which persisted from feudal times (Williams Reference Williams2024, p. 173). The British political system was still an oligarchy in which the landed aristocracy still exercised considerable influence over the Parliament (Piketty Reference Piketty2020, p. 165). Thus, both as a reader and critic of the Second Discourse and as someone with his own vision of modernity, Smith needs to address issues of land and politics.
In the following, Smith’s response to Rousseau is divided into two sections. The first section explores Smith’s account of the origin of land privatization, which highlights the choices human beings were compelled to make out of considerations of economic productivity. Smith’s more direct moral defense of unequal landed property is also examined. The second section explores how Smith identifies corrective forces related to commerce in human history that Rousseau has overlooked. We will see that Rousseau’s analysis of land and economic inequality inspired Smith’s sensitivity to the specific forms and historical contexts of economic inequality. While Rousseau stresses the negative consequences and uniformity of land and economic inequality, Smith distinguishes between the two different forms of inequality and the unique consequences that correspond to these forms. In short, he makes two observations: First, the consequences of land inequality vary according to the commercial and political conditions of society. Second, even if a commercial society does not eliminate economic inequality, the consequences of this inequality differ vastly from what Rousseau believed. Thus, Smith can avoid the political path chosen by Rousseau. The first part of the response is more grounded in moral and normative considerations, while the second part entails Smith’s and Rousseau’s judgments about human history and their vision of modern society.
III. SMITH ON THE ORIGIN OF LAND PRIVATIZATION AND INEQUALITY
Similarly to Rousseau, Smith views private land ownership as a product of the transition of human society into the agricultural age.
According to Smith, when human society entered the pastoral age, dwellings became more fixed but remained highly uncertain. At this stage, their huts and the items within them gradually began to be regarded as the property of the builders. However, property rights have not yet been extended to land or pasture. The life of a shepherd requires that he frequently change his residence or place of pasturing to find pasture for his cattle. Once he has left, the property he has built is considered to have ceased. In Lectures of Jurisprudence (Smith Reference Smith, by, Raphael and Stein1982; hereinafter LJ), Smith notes that such a people “would not easily conceive a subject of such extent as land is, should belong to an object so little as a single man” (LJ, p. 59). It is easier to imagine that the entire nation, as a larger body, owns land. For this reason, in many societies, different tribes have their own exclusive territories upon which other tribes must not encroach. However, at this stage, land is not privately owned; “the property is conceived to continue no longer in a private person than he actually possessed the subject. A field that had been pastured on by one man would be considered to be his no longer than he actually staid on it” (LJ, p. 59).
Smith argues that for some time after the arrival of the agricultural age, land was still not privately owned. Initially, the entire community cultivated a piece of land together, and the produce was divided among the residents according to the size of each family and the rank of the individuals. Smith cites Tacitus to support this claim about collective farming. Smith maintains that land privatization emerged as people settled and began living together in cities. “As their place of abode was now become fixt, it would readily appear to them to be the easiest method to make a division of the land once for all, rather than be put to the unnecessary trouble of dividing the product every year” (LJ, p. 59).
Here, we can clearly see the difference between Smith and Rousseau regarding the origin of land privatization. Although Rousseau placed considerable emphasis on the role of shifting modes of production in the origins of private land ownership, he also leveled critiques against the wealthy. In his view, the rich played a more conscious role in the genesis and consolidation of land inequality.Footnote 8 Not only in the initial enclosures but also in the subsequent fraudulent social contract, the wealthy acted as more far-sighted actors. Moreover, although Rousseau acknowledges that amour-propre develops in every individual during human societal growth, he clearly associates the emergence and expansion of private land ownership more closely with the amour-propre of the wealthy. In this regard, Rousseau offers an explanation heavily influenced by personal sentiments and experience (Dent Reference Dent2005, p. 39; Starobinski Reference Starobinski and Goldhammer1988, pp. 282–283; Williams Reference Williams2024, p. 140; Shklar Reference Shklar1978, p. 14).
In contrast, Smith’s conception of the transformation in modes of production is more detailed and prioritizes economic productivity. He sees land privatization as an adaptive choice made by human society in response to specific production and distribution problems. There is no place here for amour-propre or the rich’s exploitation of the poor. Smith also acknowledges that certain individuals may have played a greater role in the transition from collective land ownership to private property. Smith indicates that when a community decides to distribute land, “the principal persons of such a community, or state, if you please to denominate a set of men in this condition by that honorable appellation, would divide the common land into separate portions for each individual or family” (LJ, p. 59). The sarcasm in this passage is palpable and the reference to Rousseau is clear.
In the above citation, Smith discards the dimension of the wealthy’s strategic agency inherent in Rousseau’s discourse, thereby centering economic productivity in his analysis of land ownership. The practical matters of production and distribution mentioned by Smith are faced by any agricultural society, regardless of its specific stage of growth. This means that in any society, land privatization has a determinative functional dimension that serves as the foundation for any inquiry into justice or legitimacy. As previously noted, for Rousseau, the origin of land privatization has a lasting impact on the property systems of modern Europe. Consequently, Rousseau’s criticism of Europe’s existing property systems is largely based on his revelation of the origin of land privatization. Hence, Smith’s reinterpretation of the origin of land privatization weakens Rousseau’s criticism. Of course, we must also acknowledge that Smith does not address every concern Rousseau raises about land. For example, Rousseau stresses that land is a product of nature rather than human labor, a point Smith does not highlight.
In the above, by emphasizing economic productivity, Smith foregrounds a crucial factor that Rousseau marginalizes in his narrative of human inequality. Furthermore, Smith is not so simplistic as to be blind to historical justice or injustice related to landed property. He adopts a different attitude from that of Rousseau, as revealed in his analysis of land in chapter 5 of Part III of TMS.
In this chapter, Smith distinguishes between the sentimental and natural logic related to property distribution. Smith observes: “But though the general rules by which prosperity and adversity are commonly distributed, when considered in this cool and philosophical light, appear to be perfectly suited to the situation of mankind in this life, yet they are by no means suited to some of our natural sentiments” (TMS, p. 189). Our love and admiration for certain virtues make us wish to bestow upon them various honors and rewards, even though these honors and rewards are proper recompense for other qualities. Conversely, our aversion to certain vices makes us wish for them to suffer various forms of humiliation and disasters, even though the latter result from very different qualities. We wish for generosity and justice to be rewarded with wealth, power, and every kind of honor, even though these rewards are not the natural outcomes of these virtues. Our aversion to fraud, deceit, and violence makes us indignant about seeing that they possess certain benefits, even though these benefits are deserved.
The industrious knave cultivates the soil; the indolent good man leaves it uncultivated. Who ought to reap the harvest? who starve, and who live in plenty? The natural course of things decides it in favour of the knave: the natural sentiments of mankind in favour of the man of virtue. Man judges, that the good qualities of the one are greatly over-recompensed by those advantages which they tend to procure him, and that the omissions of the other are by far too severely punished by the distress which they naturally bring upon him. (TMS III.v.9, p. 189)
Here, the key elements of Rousseau’s Second Discourse—the industrious and greedy rich, the lazy poor, and the land—appear. Smith clearly paraphrases Rousseau’s relevant passages, identifying the tension between natural productive outcomes and the inherent human bias toward virtue. Within this tension, Smith more explicitly favors the logic of nature:
That a great combination of men should prevail over a small one; that those who engage in an enterprise with forethought and all necessary preparation, should prevail over such as oppose them without any; and that every end should be acquired by those means only which Nature has established for acquiring it, seems to be a rule not only necessary and unavoidable in itself, but even useful and proper for rousing the industry and attention of mankind. (TMS III.v.10, p. 190)
The foresight and schemes of the rich, which Rousseau critiques, have become part of the natural logic that is beneficial to society. Compared to Rousseau’s reservation regarding the industry and foresight of the rich, Smith evaluates these qualities differently.
Smith even elevates the debate to the ontological level. He asserts that the conflict between the natural course of events and human moral sentiments is an eternal condition that humans must face. He observes that the results produced by rules guiding the natural course of events sometimes shock all natural human feelings. Notwithstanding, Smith acknowledges humans’ relative powerlessness without recommending the use of politics and law to correct injustices. “When we thus despair of finding any force upon earth which can check the triumph of injustice, we naturally appeal to heaven” (TMS III.v.10, p. 190). Smith maintains that some injustice will always exist in the human world and cannot be corrected. These are the injustices with which we must live, and attempting to correct them through law and politics will only lead to greater injustice.Footnote 9 Religious consolation is the only compensation we can hope for in the face of such injustices. In this regard, the differences between Smith and Rousseau are clear. As Ignatieff (Reference Ignatieff1984, p. 115) points out, although both believe that inequality is the inertial direction of history, unlike Smith, Rousseau asserts that laws and politics can halt the natural course of events. Ignatieff’s characterization of Smith is somewhat absolute. For Smith, law and politics are not entirely incapable of modifying or influencing the natural course of events. However, Smith is more conservative than Rousseau. In The Social Contract, Rousseau attempts to renew politics by replanning and restricting landed property.Footnote 10 Although Smith advocates for institutional innovation, he never champions a political project on the same scale.
In sum, Smith places greater emphasis on the issue of economic productivity or efficiency underlying the origin and development of land privatization. Through this argument, alongside his distinction between natural and emotional logic, Smith challenges the validity of Rousseau’s systemic indictment toward the rich and historical inequality. From Smith’s standpoint, the origin of landed property is more a result of human adaptation to the natural environment; the calculation of the rich and powerful plays no role here, as it is precisely the transformation of the mode of subsistence—the very factor Rousseau emphasizes—that drives this process. While there is indeed some injustice in the continuation or expansion of inequality, as Rousseau indicates, it is not as illegitimate as Rousseau believes. Industry, foresight, and even the greed of the rich are part of the natural logic that human moral sentiments cannot entirely erase. Smith even believes that in human history, there will always be some injustices that cannot be corrected by law and politics.
Nevertheless, Smith’s response is hitherto insufficient in two ways. First, even if we grant that land privatization was an emergent, functional outcome, humans still seem to face the fate depicted by Rousseau in the Second Discourse. The vast inequality in land ownership threatens the survival of the poor, placing them in a state of servitude. Second, Smith’s response lacks historical dimensions. Its relationship to European history remains unclear. Therefore, Smith needs to further consider the historical significance of land privatization and its impact on human destiny to establish a foundation for his political vision, which differs from that of Rousseau.
IV. SMITH ON LAND, INEQUALITY, AND COMMERCE
Scholars have long noted that the famous passage on “the deception of nature” and the “invisible hand” in Part IV of TMS represents Smith’s significant response to Rousseau. The editors of TMS identified faint echoes of Bernard de Mandeville and Rousseau in this passage (TMS, p. 21). Ignatieff argues that in this passage, Smith explains how human progress can reconcile social inequality with provision for the poor (Ignatieff Reference Ignatieff1984, p. 113). Samuel Fleischacker (Reference Fleischacker2004, p. 109) asserts that Smith is probably agreeing with Rousseau on the importance of amour-propre (our vain desires) to the growth of civilization; in economic terms, he is endorsing the claim that luxury spending is crucial to growth. Even so, these views overlook the fact that Smith is also discussing land and politics in this passage.
In this paragraph, as Fleischacker points out, Smith first acknowledges that amour-propre drives humans to cultivate land, build houses, establish cities and countries, and develop various sciences and arts. Notwithstanding, unlike Rousseau’s speculation, Smith maintains that the rich possess more land does not endanger the survival of the poor. Proud and unfeeling landlords own vast lands without considering the needs of their fellow men. However,
The capacity of his stomach bears no proportion to the immensity of his desires, and will receive no more than that of the meanest peasant. The rest he is obliged to distribute among those, who prepare, in the nicest manner, that little which he himself makes use of, among those who fit up the palace in which this little is to be consumed, among those who provide and keep in order all the different baubles and trinkets, which are employed in the oeconomy of greatness; all of whom thus derive from his luxury and caprice, that share of the necessaries of life, which they would in vain have expected from his humanity or his justice.… They are led by an invisible hand to make nearly the same distribution of the necessaries of life, which would have been made, had the earth been divided into equal portions among all its inhabitants,… When Providence divided the earth among a few lordly masters, it neither forgot nor abandoned those who seemed to have been left out in the partition. (TMS IV.i.10, p. 203)
Smith rejects Rousseau’s assertion that land inequality endangers the survival of the poor. Although, as in the Second Discourse, greedy landlords and unequal landed properties exist, the economic consequences are completely different from those Rousseau envisages.
Nevertheless, Smith’s argument does not constitute a decisive refutation of Rousseau. First, Smith has only presented another possible consequence of land politics without fully revealing the political and economic mechanisms therein. Smith mentions the luxury and caprice of the rich as well as the services provided by the landless to the landlords. Notwithstanding, the political and economic relationships between landlords and the landless are far from clear. We do not know whether these landless people provide services and goods to landlords inside or outside their households. Donald Winch (Reference Winch1996, p. 64) suggests that Smith’s narrative lies within the framework of an agricultural society. This arbitrary but insightful judgment indicates the temporal dimensions of Smith’s claim.Footnote 11 This leads to Smith’s second shortcoming. In this passage, Smith does not provide the historical and temporal positioning of the aforementioned land-political mechanism. We cannot determine whether the political and economic mechanism has been in operation since the beginning of unequal landed property or evolved at a specific historical moment.Footnote 12
Continuing to trace the development of Smith’s thoughts, we find that Smith realized that the consequences of huge inequality in land ownership varied with historical circumstances. In Lectures on Jurisprudence, Smith compares the social impacts of a person with a great estate in the current era and of his counterpart in ancient Rome.
Although, like our ancestors, we consider those with huge estates to be monsters who destroy the livelihoods of many people, “if we observe this man we will find that he is no way prejudicial to society but rather of advantage to it” (LJ, p. 185). Using a mode of expression very similar to the “invisible hand” passage, Smith points out that he does not eat more than an ordinary plowman; the difference lies only in that the things he selects are elaborately processed and their value has increased many times after processing. The rest of the rent paid in kind is left to those who select and process this part for him. Smith continues to indicate that, although this consumption pattern does not support more people than before, it greatly increases opportunities for work and manufacturing. Here, we can see that Smith envisions the possibility that—under the premise of unequal land distribution—a consumption pattern of agricultural products would be conducive to the manufacturing and livelihood of the poor.
Smith clearly realizes that this pattern is not available in any historical context. There was no such a possibility in ancient Rome because the social and economic consequences of possessing huge estates in Rome differed completely from those in the contemporary era. The key difference is that in Rome, “the lands were then entirely cultivated by slaves; there was no such thing as free tenants” (LJ, p. 187). Because slavery was inefficient, slaves consumed five-sixths of the crops produced on land. “The remaining part also was not as at present distributed amongst free citizens who wrought to the rich man and raised up what he consumed to the value of what he laid out, but on his own slaves or those of other rich men” (LJ, p. 187). In addition, at this time, slaves practiced all kinds of trade, and the rich were accustomed to employing slaves rather than the poor to do their work. This situation led to the outcome that “the whole produce of the estates of the rich was consumed by the master and his slaves” (LJ, p. 187). In Smith’s view, this was the cause of the political seditions in Rome and Athens that demanded the establishment of agrarian law and the abolition of debt.
Smith finds that the poor face two different fates in the current era and in Rome, although in both cases, they are landless. “The poor people now who have neither a land estate nor any fortune in money can gain a livelyhood by working as a servant to a farmer in the country, or by working to any tradesman whose business they understand” (LJ, p. 187). They can achieve subsistence by adding value to the consumption of the rich. In Rome, however, all work was done by slaves. Poor citizens without land or fortune in money had no business to engage in. Their only means of subsistence was the generosity of the rich and the trading of their votes.
Thus, Smith historicizes Rousseau’s proposition that land inequality endangers the survival and freedom of the poor. From Smith’s standpoint, there are indeed situations similar to those described by Rousseau, such as the case of ancient Rome. Smith even contends that, in such circumstances, people’s complaints and fears about the rich are reasonable. However, human society is not predestined to be thus, and the current era is different. The key to this difference is the rise of commerce and manufacturing and the emergence of free tenants.
Although Smith’s response has advanced compared with Part IV of TMS, it is still not entirely satisfactory. Smith leaves a significant gap between ancient Rome and the current era. He does not yet clearly explain how the current era began. In addition, although his description of the relationship between the poor and landlords in the current era is clearer than in TMS, it is still not fully clear.
Interestingly, when explaining how the current era came about, Smith historicizes Rousseau’s relevant propositions for the second time. In this second historicization, Smith turns his eyes to the birth of a feudal society.
The German and Scythian invasions destroyed cities and villages in the prosperous western provinces of the Roman Empire, plunging them into the lowest states of poverty and barbarism.
During the continuance of those confusions, the chiefs and principal leaders of those nations, acquired or usurped to themselves the greater part of the lands of those countries. A great portion of them [were] uncultivated; however, no part, whether cultivated or uncultivated, was left without a proprietor. All were engrossed, and the greater part by a few great proprietors.” (WN III.ii.2, p. 312)
Based on this extreme inequality in land ownership, a feudal political economy was established.
Owing to the lack of foreign trade and finer manufacturers, simple products on the lands of great landlords could be used to support only two kinds of people: (1) a tenant at will, and (2) servants and retainers. Both types lived entirely within the landlord’s bounty and obeyed his orders. As Smith points out: “They necessarily became the judges in peace, and the leaders in war, of all who dwelt upon their estates. They could maintain order and execute the law within their respective demesnes, because each of them could there turn the whole force of all the inhabitants against the injustice of anyone” (WN III.iv.7, p. 330). Based on the possession of land as a means of production, landlords gained great economic and political power that exceeded the king’s interference because “he was little more than the greatest proprietor in his dominions” (WN III.iv.7, p. 330). Due to the king’s weakness, the great landlords obtained the jurisdiction and command of the militia on their lands, and were like the monarchs on their own lands. They were the masters of the lives and properties of others internally, and often rashly launched wars externally. Correspondingly, due to personal dependence and low production levels resulting from the excessive concentration of land, ordinary people lived a poor and undignified life under feudalism.
It is precisely here that Smith historicizes Rousseau’s proposition for the second time. As mentioned above, Rousseau regards the unequal ownership of land and related economic and political inequalities as chronic ailments impacting the European political and economic system. Such inequalities were further strengthened by positive laws and political systems. As a result, they not only gravely endangered the survival and freedom of the poor but also corrupted the rich by gratifying their lust for domination. Ultimately, this plunged society into a state of civil war beneath a seemingly peaceful surface. Compared with Rousseau’s description, which lacks historical details, Smith clearly locates this situation in the feudal era. Although Smith does not state clearly whether the feudal era was the pinnacle of human inequality, he noticed a tripartite phenomenon. This was the same phenomenon that Rousseau discovered as inequality neared its peak: the superposition of three pairs of oppositions—rich and poor, strong and weak, and master and slave.
In the process of historicizing Rousseau’s proposition, Smith also discerns the possibilities of change concealed within history. Unlike Rousseau, Smith does not believe that the beginning of history determined the historical process: “This original engrossing of uncultivated lands, though a great, might have been but a transitory evil” (WN III.ii.2, p. 312). Unfortunately, the laws of primogeniture and entail hindered the power of nature or time to correct the injustice and violence caused by this beginning. Fortunately, the rise of cities changed everything.
Rousseau contends that the rise of cities worsened the situation of the countryside and peasants, and did not improve the situation of the common people who fled to the cities. Influenced by David Hume, Smith tells a completely different story. Smith agrees with Rousseau that, initially, the situation of urban residents was no more favorable than that of rural residents. However, in the political niche between the landlords and the monarch, they gradually obtained freedom and became an independent political force with a certain degree of autonomy. At the same time, the rise of commerce and manufacturing transformed the rich’s domination over the poor into a focus on luxury consumption, ultimately disintegrating the political power that feudal landlords obtained through unequal land ownership and introducing order and good government to the countryside. As Smith states, “very old families, such as have possessed some considerable estate from father to son for many successive generations, are very rare in commercial countries” (WN III.iv.16, p. 333). In this new economic order, the poor no longer depend on large landlords and have become free and independent.
It is precisely at this point that Smith negates the starting point of Rousseau’s politics. Rousseau claims that land inequality had hugely negative consequences for human society, which commerce and money exacerbated. Thus, history does not have the power to correct inequality. Rousseau maintains that a political philosophy committed to securing the fundamental interests of all members must be concerned with regulating those inequalities (Neuhouser Reference Neuhouser2013, p. 215). Smith asserts that European history started a new chapter in which, precisely because of the historical contributions of commerce opposed by Rousseau, the negative economic and political outcomes of land inequality were largely eliminated.
In addition, although economic inequality still existed in the European political and economic system, the same degree of economic inequality could no longer play the same role as in the feudal system, for the following reasons.Footnote 13 First, great wealth in a commercial society is more easily dispersed: “In commercial countries, therefore, riches, despite the most violent regulations of law to prevent their dissipation, seldom remain long in the same family” (WN III.iv.16, p. 333). Second, in a commercial society, “the person who either acquires, or succeeds to a great fortune, does not necessarily acquire or succeed to any political power, either civil or military” (WN I.v.3, p. 82). Third, commerce significantly weakens the power of the same great wealth over specific individuals. Finally, the increase in productivity resulting from the division of labor greatly improves the lives of the poor. Thus, the negative consequences of inequality that Rousseau is concerned about were largely weakened.
Due to these positive effects of commerce, Smith not only generally supports the improvement of commercial policies but also supports commercial policies related to land. Smith maintains that European legislators needed to take measures to abolish the outdated law of primogeniture and entail and divide large, inefficient plots of land into smaller, more productive ones. This is undoubtedly a commercial perspective on land that differs from Rousseau’s.
V. CONCLUSION
In the Second Discourse, Rousseau offers a land-centered account of the origin and consequences of human inequality. On the one hand, Rousseau emphasizes the significant role of the transformation in modes of production—namely, the advent of metallurgy and agriculture—in the origins of land inequality. On the other hand, he maintains that the wealthy played a more deliberate role in this historical process, exercising agency in both the genesis and the consolidation of inequality. Although the hard-working rich may have grounds to obtain more of the land’s produce, they lack sufficient justification to occupy more land. Further, the cunning of the rich is manifested in their use of a specious social contract to consolidate and maintain their vested interests in response to extreme tensions caused by unequal landed property. The issue of inequality triggered by land ownership has persisted through historical inertia in the current property systems and government structures of Europe. Overall, Rousseau’s treatment of inequality is complex. He not only analyzes the causes and consequences of inequality in human nature and the human condition but also criticizes it from a normative angle. This is the starting point for Rousseau’s subsequent constructive proposal.
In the Second Discourse, Rousseau touches upon commerce. Nevertheless, contrary to Istvan Hont’s view, Rousseau does not advocate for a balanced path of growth between commerce and agriculture. He does not consider commerce to have a significantly positive impact. He condemns commerce, luxury, and cities, believing that these three elements exacerbated—or at least did not improve—the situation of rural inhabitants and common people who fled to the cities. In his opinion, the introduction of commerce merely continued (or even intensified) the historical inertia of the progression toward inequality. Hence, the initial state of land inequality determined the subsequent course of history.
As a reader and critic of the Second Discourse and someone with his own vision of modernity, Smith responds to Rousseau’s thoughts on land and politics. He presents his responses from two perspectives.
First, Smith rejects the normative burden that Rousseau assigns to the rich in the emergence and proliferation of private land ownership. According to Smith, the origin of private land ownership arises primarily from considerations of economic productivity. When humans transitioned from a nomadic society to a settled agricultural one, they encountered significant inconveniences in jointly cultivating land and distributing produce. To mitigate these inconveniences, the originally collectively owned land was divided. Although some individuals in higher positions within the community played a more prominent role in this process, they were only figuratively significant figures. As such, there was no strategic manipulation of the poor by the rich, as Rousseau claims. Additionally, Smith distinguishes between natural and sentimental logic. In his view, it is part of natural logic that hard-working, greedy, and far-sighted individuals receive greater returns from the land, which is also an appropriate reward for these corresponding qualities. Although some moral sentiments drive humans to bestow more rewards on the qualities they favor, human effort is powerless in the face of natural logic. Smith even contends that a certain degree of injustice in history, along with the eternal conflict between natural processes and moral sentiments, is a situation that humanity must confront and cannot completely rectify. Hence, in terms of both morality and economic productivity, Smith provides theoretical support for the inequality of landed property and existing property systems of Europe.
Second, Smith historicizes Rousseau’s propositions. Smith believes that the situation in which unequal land ownership led to significant negative consequences was not inevitable but was contingent upon specific historical conditions. In Part IV of TMS, Smith’s discussion of the “invisible hand” has already recognized the possibility of another economic mechanism. This mechanism counteracts the negative consequences of unequal land ownership. However, he does not fully describe this. In Lectures on Jurisprudence, by comparing ancient and modern times, Smith more comprehensively depicts several key features of this economic mechanism. Nevertheless, he does not fully explain how this mechanism is possible. Finally, through his discussion of the rise and fall of European feudalism in WN, Smith stresses the crucial role played by the rise of commerce. The growth of commerce disrupted the land-based politics of feudalism, rendering land inequality devoid of the negative consequences envisioned by Rousseau. Thus, unlike Rousseau, for Smith, the beginning of land inequality does not determine historical processes. Owing to the structural changes brought about by the rise of commerce, although land inequality and economic inequality exist within the political and economic system of modern Europe, their impacts differ vastly from those in feudal society.
To a considerable extent, these differences laid the foundation for the divergence between Smith and Rousseau in their political and economic programs. Rousseau condemns the existing property systems in Europe and calls for limiting land inequality and commerce in his constructive proposal. In contrast, Smith claims that, first, from the perspective of economic productivity and the natural logic, the existing property systems possess inherent rationality; second, due to the rise of commerce, the adverse consequences of the land-based politics that Rousseau is concerned about were largely remedied. Therefore, on the premise of not drastically changing the existing property system, promoting the development of commerce through more reasonable policies is a way forward for Europe.Footnote 14
COMPETING INTERESTS
The author declares no competing interests exist.