This weekend marks the 250th anniversary of the publication of the Declaration of Independence — America’s birthday. And this year also marks the 250th anniversary of the publication of Adam Smith’s The Wealth of Nations. Both share much in common.

Perhaps most famously, America’s founders and Adam Smith share the view that machinery can be erected to channel the self interest of individuals into beneficial social outcomes. One of Smith’s counterintuitive arguments is that an economy shaped by the decisions of individuals pursuing their self-interest will be more prosperous than one with heavy government oversight — that the nation will be more likely to produce the right amount of food, clothing, shelter, educational services, and medical care in a free-for-all than with someone trying to make sure that enough of each is produced and provided.

Similarly,........

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