# Book V: Of the Revenue of the Sovereign or Commonwealth explained — The Wealth of Nations

> Chapter companion for The Wealth of Nations by Adam Smith.

## What happens

This book examines the necessary expenses of the sovereign or commonwealth, including defense, justice, public works, and institutions, and discusses the various sources of public revenue, such as taxes and duties, to support these expenses.

## Themes in this chapter

### Role of Government

Smith delineates the sovereign's duties, including defense, justice, and public works, as essential functions of government.

### Wealth and Money

Discussion of public revenue sources, including taxes on rent, profit, and consumption, ties directly to the generation and management of national wealth.

## Character check-ins

### Adam Smith

Author and primary voice analyzing the revenue and expenses of the sovereign.

### The Sovereign

Central figure responsible for the expenses of defense, justice, and public works.

### The Judges

Officers of justice whose expenses are part of the sovereign's duties.

### The Public

The collective body that benefits from public works and institutions funded by revenue.

## Key lines

> The first duty of the sovereign, that of protecting the society from the violence and invasion of other independent societies, can be performed only by means of a military force.

The sovereign's primary responsibility is national defense, which requires a standing army or militia.

_Smith emphasizes the necessity of military expenditure as the first expense of the state._

> The second duty of the sovereign is that of protecting, as far as possible, every member of the society from the injustice or oppression of every other member of it, or the duty of establishing an exact administration of justice.

The sovereign must establish a fair judicial system to protect individuals from each other.

_Justice administration is a core function of government, requiring public funding for courts and judges._

> The third and last duty of the sovereign or commonwealth is that of erecting and maintaining those public institutions and those public works which, though they may be in the highest degree advantageous to a great society, are, however, of such a nature that the profit could never repay the expense to any individual or small number of individuals.

The government should provide public goods like roads, bridges, and education that are beneficial but not profitable for private enterprise.

_Smith justifies public works as necessary for commerce and societal well-being, funded by general revenue._

## Links

- HTML: https://www.betterreads.online/discover/the_wealth_of_nations_se/chapters/book-v
- Book: https://www.betterreads.online/discover/the_wealth_of_nations_se
- All chapters: https://www.betterreads.online/discover/the_wealth_of_nations_se/chapters