'I'm sometimes told that the Scots don't like Thatcherism,' Margaret Thatcher told the Scottish Conservative Conference in 1988. 'Well, I find that hard to believe - because the Scots invented Thatcherism, long before I was thought of.' The Scot she meant was Adam Smith, a figure popularly identified as the founder of economics, an apostle of capitalism and honoured prophet of the new right. It was exasperating for Thatcher, and a pleasing irony for her opponents, that the nation of Adam Smith should so decisively and repeatedly reject the lessons of Thatcherite economics. Yet at the root of her puzzlement, by a further irony, was her own misunderstanding of Smith. It was not simply that the electorate north of the border had betrayed its free-marketeering heritage, but that Thatcher's hero was far from the proto-Thatcherite she and her advisers assumed him to be.

LRB 7 October 2010 | PDF Download