In An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith, especially in Parts III and IV, there is a detailed discussion about education, religion, and the role of the state in building a civilized and well-functioning society. The ancient Greeks and Romans are often praised for their outstanding civil and military abilities, which some even say rival those of modern nations. However, a closer look reveals that formal education in their states beyond military training did not seem to be a major government focus. Instead, education was mostly delivered by private tutors who competed fiercely to offer expertise in the arts and sciences most relevant to their society. This resembles a free market: demand creates supply, and competition drives quality up.
In contrast, modern times have seen formal education become institutionalized and standardized, often limiting space for high-quality private teachers due to regulations, subsidies, and monopolies held by established educational institutions. This can lead to stagnation and decline in teaching quality, especially at universities. Nothing’s perfect there are pros and cons but we need to be aware how formal systems sometimes turn into “golden cages” that restrict more creative and diverse learning opportunities.
Moreover, women’s education in the past, lacking institutional centralization, tended to focus on practical knowledge directly useful in daily life. This reminds us that education tailored to social context and actual needs has real power, whereas forced formal education without relevance risks becoming a boring burden. So the big question is: how can the state manage education effectively without stifling creativity and diverse societal needs?
Education and the Role of the State
In a highly stratified society with clear divisions by class and profession, most people engage in simple, repetitive tasks that require little variation or innovation. As a result, their intellectual and social capacities stagnate or even decline. Someone who repeats the same work daily without variation loses critical thinking and creative skillsn much like muscles that weaken without exercise. This makes it difficult for them to participate in rational discussions, make quality decisions, or fulfill basic civic duties. Additionally, the courage and spirit to defend the nation fade away under such monotonous and unstimulating conditions.
By contrast, “barbarian” societies often underestimated such as hunter-gatherers and early farmers, experience much more diverse activities. They are constantly solving new problems, which keeps creativity and intelligence sharp. Meanwhile, only a few high-ranking individuals enjoy the freedom to think and learn broadly due to their complex social positions.
Therefore, general education directed by the state is especially crucial for the working classes—so they don’t fall into ignorance, superstition, or become easily controlled by certain groups. The state can facilitate basic literacy reading, writing, and arithmetic through small, affordable schools staffed by teachers partly paid by government and partly by students or their families. This system has proven effective in Scotland and England for spreading basic literacy. These schools could be improved by teaching basic sciences like geometry and mechanics, which are practical for everyday work and encourage critical thinking.
Religion and Political Power
When it comes to religion, Adam Smith observes that religious institutions funded permanently by the state like churches endowed with land or fixed salaries tend to become complacent and lose enthusiasm for teaching or innovation. Conversely, religious teachers who rely on voluntary contributions from their congregations are usually more motivated and energetic, since their livelihood depends on pleasing and supporting their community.
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However, when religion is intertwined with politics when the state favors one religion or sect over others—religion tends to spread fanaticism and intolerance to maintain power and influence. European history shows how the Roman Catholic Church formed a vast network of power that often clashed with state interests. The church owned vast lands and wealth, giving it immense social and political influence sometimes more than local rulers.
Conflicts between church and state arose because the state wanted to control clergy and regulate religion to preserve peace and stability, while the church sought independence and power. The Protestant Reformation further complicated matters, spreading quickly and gaining support from rulers hostile to the Vatican. Europe was divided into various sects with different religious governance structures and unique relationships with their states.
Higher Education and the Role of Teachers
Adam Smith also highlights the critical role of teachers and professors as guardians of knowledge. Most great figures from ancient Greece and Rome were not just practitioners or writers, but also dedicated educators who revisited their subjects year after year until they mastered their fields. Teaching is indeed the most effective way to truly learn a subject.
However, in some Catholic countries, universities became battlegrounds for positions, often losing top talent to church bureaucracy, which prioritized status and power over scholarship. In Protestant countries like Scotland, Switzerland, and the Netherlands, universities flourished with talented, independent professors, fueling scientific progress and societal development.
State Funding and Tax Justice
Smith emphasizes fairness in financing the state: every member of society should contribute according to their means. Defense and support of the chief magistrate clearly benefit everyone and thus should be funded collectively. However, local expenses like policing in a town should be paid by local communities, not burden the entire nation.
Similarly, education and religious institutions, which benefit society at large, can be funded publicly but might also be fairly funded by those who benefit directly or through voluntary contributions.
Smith criticizes the excessive wealth of the church, which reduces the state’s ability to fund other vital needs, including defense. The richer the church, the poorer the sovereign or people, and the weaker the state’s capacity to protect itself.
Overall, Adam Smith calls for a thoughtful balance in the state's role in education, religion, and governance. Education should be facilitated so all social layers gain essential knowledge, especially the working classes to prevent ignorance and manipulation. Religion, when mixed with political power, risks spreading fanaticism and unrest. The state must carefully balance religious influence and maintain fair, proportional funding.
We learn that good education and moderate religion, along with a healthy church-state relationship, produce a society that is rational, peaceful, and less prone to division or intellectual decline.
As Smith wisely notes, committed educators and moderate religious institutions help nurture a society where reason and civility thrive goals worth pursuing in any era.
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