October 2, 2011     Permalink Tweet: Reclaiming Adam Smith: .ly/qQxoay Submitted by Michael Dewey

The fifth and final book delves at length into the effect of military spending on economic wealth. It talks about the extreme risk a standing army poses to democracy (Smith gives Rome and Cromwell's parliament as examples). He allows that with advanced military technology, a standing army may be necessary, as militia members have other occupations that prevent them from engaging in extensive training. However he argues that military spending must be strictly limited and never funded by borrowing. He predicts that indebtedness for military spending will eventually cause the economic ruin of all European countries.