David Hume's Practical Economics

Abstract

David hume rejected utopian experiments in government. He presented his own "idea of a perfect commonwealth," but his approach to political economy was practical and surprisingly modern. In nine essays on economics he argued that 1) national strength lies in productivity; 2) trade indirectly benefits the state by enriching all the people; 3) luxury, Economic growth and refinement in the arts are compatible; 4) the international flow of money should be encouraged; 5) rate of interest is a key to a nation's health; 6) free trade is desirable; 7) a country cannot become rich by beggaring its neighbors; 8) taxes should be low as an incentive to growth; and 9) the public debt can have beneficial effects.