Discourse on Political Economy

The word Economy, or Œconomy, is derived from οἰκός, a house, and νόμος, law, and meant originally only the wise and legitimate government of the house for the common good of the whole family. The meaning of the term was then extended to the government of that great family, the State. To distinguish these two senses of the word, the latter is called general or political economy, and the former domestic or particular economy. The first only is discussed in the present discourse.

Even if there were as close an analogy as many authors maintain between the State and the family, it would not follow that the rules of conduct proper for one of these societies would be also proper for the other. They differ too much in extent to be regulated in the same manner; and there will always be a great difference between domestic government, in which a father can see everything for himself, and civil government, where the chief sees hardly anything save through the eyes of others. To put both on an equality in this respect, the talents, strength, and all the faculties of the father would have to increase in proportion to the size of his family, and the soul of a powerful monarch would have to be, to that of an ordinary man, as the extent of his empire is to that of a private person's estate.