Adam Smith said a lot of things -- he was a philosopher of morals before he wrote about what we today call economics.
While he recommended the necessity of basic state institutions, I think would be a reach to say that he would justify the whole of the modern state, as some people nowadays try to imply. He'd probably be considered thoroughly minimalist by today's standards.
Smith's most important contribution was popularising the observation that greed can lead to positive outcomes, so long as it is hedged with some carefully chosen rules. It's inevitable, so there's no much point getting upset about it. Why not turn it to largely positive ends?
He wasn't first. Bernard de Mandeville was well ahead of him with The Fable of the Bees.
While he recommended the necessity of basic state institutions, I think would be a reach to say that he would justify the whole of the modern state, as some people nowadays try to imply. He'd probably be considered thoroughly minimalist by today's standards.
Smith's most important contribution was popularising the observation that greed can lead to positive outcomes, so long as it is hedged with some carefully chosen rules. It's inevitable, so there's no much point getting upset about it. Why not turn it to largely positive ends?
He wasn't first. Bernard de Mandeville was well ahead of him with The Fable of the Bees.
I found Hayek enlightening to read: http://chester.id.au/2012/12/07/review-the-essence-of-hayek-...