# Conclusion explained — The Wealth of Nations

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

## What happens

Smith argues that expenses for defense and the chief magistrate's dignity should be funded by general societal contribution, while the administration of justice can be funded by court fees from those who occasion or benefit from it. Local expenses should be met locally, and public works like roads and education may be funded by general revenue or by those directly benefited, with general revenue covering any deficiencies.

## Themes in this chapter

### Role of Government

Smith delineates which public expenses should be borne by general taxation versus specific fees, outlining principles of fiscal justice.

## Character check-ins

### The Judges

Mentioned in context of courts of justice restoring or maintaining rights.

### The Master

Implied as part of the chief magistrate's dignity and the general contribution.

## Key lines

> The expense of defending the society, and that of supporting the dignity of the chief magistrate, are both laid out for the general benefit of the whole society. It is reasonable, therefore, that they should be defrayed by the general contribution of the whole society, all the different members contributing, as nearly as possible, in proportion to their respective abilities.

Costs for national defense and the head of state's dignity benefit everyone, so they should be paid by all citizens in proportion to their means.

_Smith's principle of proportional taxation for public goods._

> The expense of the administration of justice too, may, no doubt, be considered as laid out for the benefit of the whole society. There is no impropriety, therefore, in its being defrayed by the general contribution of the whole society. The persons, however, who give occasion to this expense are those who, by their injustice in one way or another, make it necessary to seek redress or protection from the courts of justice.

While justice benefits all, it is specifically triggered by wrongdoers, so court fees can justly be paid by those who use the courts.

_Smith justifies court fees as a user-pays system for justice._

> Those local or provincial expenses of which the benefit is local or provincial (what is laid out, for example, upon the police of a particular town or district) ought to be defrayed by a local or provincial revenue, and ought to be no burden upon the general revenue of the society. It is unjust that the whole society should contribute towards an expense of which the benefit is confined to a part of the society.

Local benefits should be funded locally, not by national taxes, to avoid unfairness.

_Smith advocates for fiscal decentralization._

## Links

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