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Chapter 18 of 74 · Lectures on Justice, Police, Revenue and Arms by Adam Smith

[§ 10. How the Government of England became Absolute.]

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Having shown how the House of Commons became considerable, we shall next show how the nobility’s power decreased and the government turned arbitrary.

In all the courts of Europe the power of the nobility declined from the common causes, the improvements in arts and commerce. When a man could spend his fortune in domestic luxury he was obliged to dismiss his retainers. By their ancient rustic hospitality they could more easily maintain 1000 retainers than at present lodge one lord for a night. Richard, Earl of Warwick, who was styled Make-King, maintained every day forty thousand people besides tenants2. But when luxury took place he was unable to do this3. Thus the power of the nobility was diminished, and that too before the House of Commons had established its authority, and thus the king became arbitrary. Under the House of Tudor the government was quite arbitrary, the nobility were ruined, and the boroughs lost their power.

It might be expected that the sovereign also should have lost his authority by the improvement of arts and commerce, but a little attention will convince us that the case must have been quite opposite. A man possessed of forty thousand pounds a year, while no other body Edition: current; Page: [43] can spend above a hundred, cannot be affected by the increase of luxury. This is precisely the case of the king. He is possessed of a million, while none of his subjects can spend above thirty or forty thousand pounds, and therefore he can spend it in no other way, but by maintaining a great number of people1. Luxury must therefore sink the authority of the nobility, whose estates are small in proportion to that of the king; and as his continues unaffected, his power must become absolute. Though this was the case in most nations of Europe, yet in Germany it was quite otherways. The monarchy there was elective, and consequently never could have so much authority. The country is much larger than any other in Europe, and at the dissolution of the feudal government the nobility, who were possessed of considerable fortunes already, got more in proportion than the rest; thus their estates rose so high above those that were immediately below them, that it was impossible for them to spend them in luxury, and therefore they were able to keep a considerable number of retainers. Thus in Germany the power of the nobility was preserved, while in England it was utterly destroyed, and the king rendered absolute.

Lectures on Justice, Police, Revenue and Arms

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