Requiem for the American Dream: The 10 Principles of Concentration of Wealth & Power

Adam Smith is widely considered a foundational figure in economics and the father of Capitalism. He’s most known for his work, An Inquiry into the Nature and Causes of the Wealth of Nations (1759), shortened as The Wealth of Nations. Smith devised the theory of absolute advantage, which argues that a country capable of producing goods more efficiently has an absolute advantage over its competitors. Smith considered this relevant to the smooth function of an international free market system: If a product can be more cheaply bought and imported from overseas, a country has no reason to attempt to monopolize its manufacture domestically. In Principle 6, Chomsky points out the flaws of Smith’s advantage framework: Historically, colonies who monopolized their production of goods enjoyed greater economic growth than their deindustrialized counterparts. This was true of the US when it monopolized the production of cotton at the expense of European purchasers. In contrast, other countries, such as India, Egypt, and Ireland, saw their economies drained and their rights oppressed by colonizers. Chomsky thus exposes Smith’s advantage framework as neoliberal and ultimately antidemocratic since it serves to concentrate power to the elite.

Smith is a prominent figure in Requiem for the American Dream because of his status as a founding figure of modern economics. His other relevant contribution, the “vile maxim,” is a concept that Chomsky repeatedly cites throughout his work. Smith’s “vile maxim” can be summed up as a principle of selfishness. It dictates that the sole concern of the rich and powerful is to gain additional wealth for themselves, with no consideration for other concerns (such as the welfare of workers, society at large, or the environment). All arguments against corporate tyranny in Requiem for the American Dream are founded on this belief: Businesses are concerned only with maximizing profit and will attempt to dismantle any political system or organization that prevents them from doing so.