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ASA
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See also
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See also
Åsa (disambiguation)
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ASA
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Table of Content
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About, Biology and medicine, Education and research, Organizations, Sports, Transportation, Other, See also
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Actium
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Short description
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thumb|300px|A map showing the Battle of Actium.
Actium or Aktion () was a town on a promontory in ancient Acarnania at the entrance of the Ambraciot Gulf, off which Octavian gained his celebrated victory, the Battle of Actium, over Antony and Cleopatra, on September 2, 31 BC.
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Actium
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History
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History
thumb|Battle of Actium by Laureys a Castro, 1672. Note anachronisms.
Actium belonged originally to the Corinthian colonists of Anactorium, who probably founded the sanctuary of Apollo Actius.E. Kristen: "The Origins of the first inhabitants of Nicopolis", Proceedings of the First International Symposium on Nicopolis, 1984 This temple was of great antiquity. In the 3rd century BC it fell to the Acarnanians, who subsequently held their religious summits there.
There was also an ancient festival named Actia, celebrated here in honour of the god. Augustus after his victory enlarged the temple, and revived the ancient festival, which was henceforth celebrated once in five years (πενταετηρίς, ludi quinquennales), with musical and gymnastic contests, and horse races.Dio Cassius 51.1; Suetonius Aug. 18.
We learn from a Greek inscription found on the site of Actium, and which is probably prior to the time of Augustus, that the chief priest of the temple was called Ἱεραπόλος, and that his name was employed in official documents, like that of the first Archon at Athens, to mark the date.August Böckh, Corpus Inscript. No. 1793. Strabo says that the temple was situated on an eminence, and that below was a plain with a grove of trees, and a dock-yard; and in another passage he describes the harbour as situated outside of the gulf.
On the opposite coast of Epirus, Augustus founded the city of Nicopolis in honour of his victory. After the foundation of Nicopolis, a few buildings sprang up around the temple, and it served as a kind of suburb to Nicopolis.
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Actium
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Archaeology
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Archaeology
On October 8, 1980, the Greek Ministry of Transport and Communications reported that shipwrecks from the Battle of Actium had been located at Actium near the entrance to the Ambracan Gulf."Greece Reports Finding Wrecks Of Romans Ships— Buried Vessels Are Linked to the Battle of Actium", by Paul Anastasi, The New York Times, October 8, 1980, pA3
In Summer 2009, archaeologists discovered the ruins of the Temple of Apollo and found two statue heads, one of Apollo, one of Artemis (Diana).
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Actium
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See also
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See also
Battle of Actium
List of ancient Greek cities
Preveza the nearest modern town, connected by a 1.5 km long tunnel
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Actium
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References
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References
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Actium
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External links
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External links
Category:Ancient Greek archaeological sites in Greece
Category:Archaeological sites in Western Greece
Category:Corinthian colonies
Category:Former populated places in Greece
Category:Roman towns and cities in Greece
Category:Populated places in ancient Acarnania
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Actium
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Table of Content
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Short description, History, Archaeology, See also, References, External links
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Amway
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short description
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Amway Corp. (short for "American Way") is an American multi-level marketing (MLM) company that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan. Amway and its sister companies under Alticor reported sales of $8.9 billion in 2019. It is the largest multi-level marketing company in the world by revenue. It conducts business through a number of affiliated companies in more than a hundred countries and territories.
Amway has been investigated in various countries and by institutions such as the US Federal Trade Commission (FTC) for alleged pyramid scheme practices. The company has paid tens of millions of dollars to settle these suits. In 1983, Amway admitted to defrauding the Canadian government of customs duties and taxes by falsely undervaluing goods it imported into the country over a period of 15 years; it had to pay a fine. Between 2007 and 2008, Amway was found guilty of illegal business practices in India, a ruling upheld by the Supreme Court of India and followed in 2021 by India's Enforcement Directorate attaching company and bank assets, identifying Amway's business model as a pyramid fraud and its product offerings a masquerade.
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Amway
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History
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History
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Amway
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Founding
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Founding
thumb|upright|Amway Japan head office
thumb|upright|Amway Vietnam (Hồ Chí Minh City)
Jay Van Andel and Richard DeVos had been friends since school days and business partners in various endeavors, including a hamburger stand, an air charter service, and a sailing business. In 1949, they were introduced to the Nutrilite Products CorporationA California-based direct sales company founded by Carl Rehnborg, the developer of the first multivitamin marketed in the United States by Van Andel's second cousin Neil Maaskant. DeVos and Van Andel signed up to become distributors for Nutrilite food supplements in August. They sold their first box the next day for $19.50, but lost interest for the next two weeks. They traveled to Chicago to attend a Nutrilite seminar soon afterward, at the urging of Maaskant, who had become their sponsor. They watched promotional filmstrips and listened to talks by company representatives and successful distributors, then they decided to pursue the Nutrilite business. They sold their second box of supplements on their return trip to Michigan, and rapidly proceeded to develop the business further.
Earlier in 1949, DeVos and Van Andel had formed the Ja-Ri Corporation (abbreviated from their respective first names) to import wooden goods from South American countries. After the Chicago seminar, they turned Ja-Ri into a Nutrilite distributorship instead. In addition to profits on each product sold, Nutrilite offered commissions on sales made by new distributors introduced to the company by existing distributors—a system known as multi-level marketing or network marketing. By 1958, DeVos and Van Andel had built an organization of more than 5,000 distributors. However, they and some of their top distributors formed the American Way Association, or Amway, in April 1959 in response to concerns about the stability of Nutrilite and in order to represent the distributors and look for additional products to market.
Their first product was called Frisk, an organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner). They subsequently formed the Amway Sales Corporation to procure and inventory products and to handle sales and marketing plans, and the Amway Services Corporation to handle insurance and other benefits for distributors.Bill Hybels interview with Rich DeVos at the Global Leadership Summit in 2000 In 1960, they purchased a 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation. In 1964, the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form the Amway Corporation.From MLM Law Library: FTC Final Order from May 8, 1979 (93 F.T.C. 618) .
Amway bought a controlling interest in Nutrilite in 1972 and full ownership in 1994.
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Amway
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International expansion
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International expansion
Amway expanded to Australia in 1971, to parts of Europe in 1973, to parts of Asia in 1974, to Japan in 1979, to Latin America in 1985, to Thailand in 1987, to China in 1995, to Africa in 1997, to India and Scandinavia in 1998, to Ukraine in 2003, to Russia in 2005, and to Vietnam in 2008.
In 2014, a Russian loyalty card program called "Alfa-Amway" was created when Amway joined with Alfa-Bank.
Amway was ranked by Forbes as the 42nd-largest privately held company in the United States in 2018, and as the number one largest company on the Direct Selling News Global 100 list in 2018.
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Amway
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Quixtar
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Quixtar
The founders of the Amway corporation established a new holding company in 1999, named Alticor, and launched three new companies: a sister (and separate) Internet-focused company named Quixtar, Access Business Group, and Pyxis Innovations. Pyxis, later replaced by Fulton Innovation, pursued research and development and Access Business Group handled manufacturing and logistics for Amway, Quixtar, and third-party clients.
The main difference was that each "Independent Business Owner" (IBO) could order directly from Amway on the Internet, rather than from their upline "direct distributor", and have products shipped directly to their home. The Amway name continued being used in the rest of the world. Virtually all Amway distributors in North America switched to Quixtar, prompting Alticor to close Amway North America after 2001. In June 2007, it was announced that the Quixtar brand would be phased out over an eighteen– to twenty-four–month period in favor of a unified Amway brand (Amway Global) worldwide.
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Amway
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Global markets
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Global markets
According to the Amway website, the company operated in over 100 countries and territories, organized into regional markets: the Americas, Europe, greater China, Japan and Korea, and SE Asia/Australia. Amway's top ten markets are China, Korea, the United States, Japan, Thailand, Taiwan, India, Russia, Malaysia and Italy.
In 2008, Alticor announced that two-thirds of the company's 58 markets reported sales increases, including strong growth in the China, Russia, Ukraine and India markets.
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Amway
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Amway Australia
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Amway Australia
See Amway Australia
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Amway
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Amway China
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Amway China
Amway China launched in 1995. In 1998, after abuses of illegal pyramid schemes led to riots, the Chinese government enacted a ban on all direct selling companies, including Amway."Chinese officials ban direct marketing", April 22, 1998 Associated Press, The Associated Press After the negotiations, some companies like Amway, Avon, and Mary Kay continued to operate through a network of retail stores promoted by an independent sales force. China introduced new direct selling laws in December 2005, and in December 2006, Amway was one of the first companies to receive a license to resume direct sales. However, the law forbids teachers, doctors, and civil servants from becoming direct sales agents for the company and, unlike in the United States, salespeople in China are ineligible to receive commissions from sales made by the distributors they recruit.
In 2006, Amway China had a reported 180,000 sales representatives, 140 stores, and $2 billion in annual sales."Amway, Mary Kay get long-awaited direct-selling licenses in China" Rob Kirkbride, December 24, 2006, Kalamazoo Gazette In 2007, Amway Greater China and South-east Asia Chief Executive Eva Cheng was ranked no. 88 by Forbes magazine in its list of the World's Most Powerful Women. In 2008, China was Amway's largest market, reporting 28% growth and sales of 17 billion yuan (US$2.5 billion). According to a report in Bloomberg Businessweek in April 2010, Amway had 237 retail shops in China, 160,000 direct sales agents, and $3 billion in revenue. Since then, Amway has been continuing to expand in China, even as the government has been imposing greater restrictions on the company, and launched a WeChat mini-program in 2021.
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Amway
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Brands
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Brands
Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later the hair care product Satinique (1965) and the cosmetics line Artistry (1968).
In 2018, nutrition and wellness products were 52% of total sales, and beauty and personal care products were 26% of total sales.
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Amway
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Household cleaners
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Household cleaners
Amway is best known in North America for its original multi-purpose cleaning product LOC, SA8 laundry detergent, and Dish Drops dishwashing liquid. Consumer Reports conducted blind testing of detergents in 2010 and ranked versions of Amway's Legacy of Clean detergents 9th and 18th of 20 detergents tested. Consumer Reports program manager Pat Slaven recommended against buying the products because consumers can "go to the grocery store and get something that performs a whole lot better for a whole lot less money".
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Amway
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Health and beauty
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Health and beauty
Amway's health and beauty brands include Artistry, Satinique, Hymm, Body Series, Glister, Moiskin (South America), Nutrilite, Nutriway (Scandinavia and Australia/New Zealand), Attitude (India), eSpring, Atmosphere and iCook as well as XL and XS Energy drinks. Other Amway brands that were discontinued or replaced include Tolsom, Eddie Funkhouser New York, or beautycycle (Eastern Europe).
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Amway
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Artistry
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Artistry
Amway's Artistry products include skin care, cosmetics, and anti-aging creams and serums. In 2011, Artistry brand reached sales of $2.8 billion.
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Amway
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Nutrilite
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Nutrilite
Amway's largest-selling brand is the Nutrilite range of health supplements (marketed as Nutriway in some countries), and in 2008 Nutrilite sales exceeded $3 billion globally. In 2001, NSF International issued its first five dietary supplement certifications to Nutrilite.
In 2011, Nutrilite brand of vitamins and dietary supplements led Amway's sales, totaling almost $4.7 billion. According to Euromonitor International, in 2014, Nutrilite was the world's No. 1 selling vitamins and dietary supplements brand. In 2015, it was reported that according to Euromonitor International, Amway was the largest vitamin and dietary supplement vendor in China, with 11% of a market that generated 100 billion yuan ($15.6 billion) in annual sales. In 2015, it was reported that according to China Confidential consumer brands survey, Amway Nutrilite was the most popular vitamin and dietary supplement brand in China.
In January 2009, Amway announced a voluntary recall of Nutrilite and XS Energy Bars after learning that they had possibly been manufactured with Salmonella-contaminated ingredients from Peanut Corporation of America. The company indicated that it had not received any reports of illness in connection with the products.
In 2012, the Center for Science in the Public Interest (CSPI), accused Amway of making unsubstantiated and illegal claims about Nutrilite Fruits & Vegetables 2GO Twist Tubes and threatened to launch a class action lawsuit against the company unless it took remedial action. Amway responded that the claims made about the products were properly substantiated and that they did not plan to change the product's labeling but nevertheless would review the statements that CSPI has questioned. CSPI later reported that Amway had agreed to changing product labels by the end of 2014.
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Amway
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eSpring
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eSpring
Amway's eSpring water filter was introduced in 2000. According to Amway, it was the first system to combine a carbon block filter and ultraviolet light with electronic-monitoring technology in the filter cartridge and it became the first home system to achieve certification for ANSI/NSF Standards 42, 53, and 55. According to Amway, eSpring was the first water treatment system to receive certification for all fifteen NSF/ANSI 401 contaminants which include pharmaceuticals, pesticides and herbicides. The company also claims that, in addition to these 15 contaminants, eSpring is certified for more than 145 potential contaminants, including lead and mercury.
eSpring was the first commercial product which employed Fulton Innovation's eCoupled wireless power induction technology. Companies licensing this technology include Visteon, Herman Miller, Motorola and Mobility Electronics. Fulton was a founding member of the Wireless Power Consortium which developed the Qi (inductive power standard).
In 2007 eSpring was ranked fifth out of 27 brands in a comparison of water filters by Consumer Reports.
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Amway
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XS
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XS
On January 14, 2015, Amway announced that it had acquired XS Energy, a California-based brand of energy drinks and snacks. The XS Energy brand has been sold as an Amway product since 2003. As of January 2015, it has been distributed in 38 countries, generating annual sales of $150 million.
According to Euromonitor International, the XS Energy was the first exclusively sugar-free energy drink brand sold globally.
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Amway
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Ditto Delivery
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Ditto Delivery
Ditto Delivery is Alticor's automatic monthly program that delivers more of the same items a customer has previously ordered. As of May 2001, Ditto Delivery accounted for 30% of Quixtar's North American sales.
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Amway
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Business model
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Business model
Amway combines direct selling with a multi-level marketing strategy. Amway distributors, referred to as "independent business owners" (IBOs), may market products directly to potential customers and may also sponsor and mentor other people to become IBOs. IBOs may earn income both from the retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline (IBOs they have sponsored) have generated. People may also register as IBOs to buy products at discounted prices. Harvard Business School, which described Amway as "one of the most profitable direct selling companies in the world", noted that Amway founders Van Andel and DeVos "accomplished their success through the use of an elaborate pyramid-like distribution system in which independent distributors of Amway products received a percentage of the merchandise they sold and also a percentage of the merchandise sold by recruited distributors".
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Amway
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Sports sponsorships
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Sports sponsorships
thumb|upright|Scott Brayton's Amway sponsored race car at the 1987 Indianapolis 500
In the late 1980s and early 1990s, Amway sponsored racing driver Scott Brayton in the CART IndyCar championship.
In December 2006, Alticor secured the naming rights for the Orlando Magic's home basketball arena in Orlando, Florida. The Orlando Magic is owned by the DeVos family. The arena, formerly known as the TD Waterhouse Centre, was renamed the Amway Arena. Its successor, the Amway Center, was opened in 2010, and the older arena was demolished in 2012 and held the naming rights until December 2023 when Kia bought the rights."Amway Arena To Be Imploded" WESH.com Orlando
In 2009, Amway Global signed a three-year deal with the San Jose Earthquakes Major League Soccer team to become the jersey sponsor.
In March 2009, Amway Global signed a multi-year deal to become the presenting partner of the Los Angeles Sol of Women's Professional Soccer. The deal, however, would last only one year, as the Sol folded in 2010.
In 2011, Amway signed a three-year deal to be the presenting sponsor of the National Hockey League's Detroit Red Wings.
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Amway
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Politics and culture
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Politics and culture
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Amway
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Political contributions
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Political contributions
In the 1990s, the Amway organization was a major contributor to the Republican Party (GOP) and to the election campaigns of various GOP candidates. Amway and its sales force contributed a substantial amount (up to half) of the total funds ($669,525) for the 1994 political campaign of Republican congresswoman and Amway distributor Sue Myrick (N.C.). According to two reports by Mother Jones magazine, Amway distributor Dexter Yager "used the company's extensive voice-mail system to rally hundreds of Amway distributors into giving a total of $295,871" to Myrick's campaign. According to a campaign staffer quoted by the magazine, Myrick had appeared regularly on the Amway circuit, speaking at hundreds of rallies and selling $5 and $10 audiotapes. Following the 1994 election, Myrick maintained "close ties to Amway and Yager", and raised $100,000 from Amway sources, "most notably through fundraisers at the homes of big distributors", in the 1997–98 election cycle.
In October 1994, Amway gave the biggest corporate contribution recorded to that date to a political party for a single election, $2.5 million to the Republican National Committee (RNC), and was the number one corporate political donor in the United States. In the 2004 election cycle, the organization contributed a total of $4 million to a conservative 527 group, Progress for America.From opensecrets.org: Progress for America – Top Contributors, 2004 Cycle
In July 1996, Amway co-founder Richard DeVos was honored at a $3 million fundraiser for the Republican Party, and a week later, it was reported that Amway had tried to donate $1.3 million to pay for Republican "infomercials" and televising of the GOP convention on Pat Robertson's Family Channel, but backed off when Democrats criticized the donation as a ploy to avoid campaign-finance restrictions.
In April 1997, Richard DeVos and his wife, Helen, gave $1 million to the RNC, which, at the time, was the second-largest soft-money donation ever, behind Amway's 1994 gift of $2.5 million to the RNC. In July 1997, Senate Majority Leader Trent Lott and House Speaker Newt Gingrich slipped a last-minute provision into a hotly contested compromise tax bill that granted Amway and four other companies a tax break on their Asian branches that totaled $19 million.
In a column published in the Fort Worth Star-Telegram newspaper in August 1997, reporter Molly Ivins wrote that Amway had "its own caucus in Congress...Five Republican House members are also Amway distributors: Reps. Sue Myrick of North Carolina, Jon Christensen of Nebraska, Dick Chrysler of Michigan, Richard Pombo of California, and John Ensign of Nevada. Their informal caucus meets several times a year with Amway bigwigs to discuss policy matters affecting the company, including China's trade status."
A 1998 analysis of campaign contributions conducted by Businessweek found that Amway, along with the founding families and some top distributors, had donated at least $7 million to GOP causes in the preceding decade. Political candidates who received campaign funding from Amway in 1998 included Representatives Bill Redmond (R–N.M.), Heather Wilson (R–N.M.), and Jon Christensen (R–Neb).
According to a report by the Center for Public Integrity, in the 2004 election cycle, members of the Van Andel and DeVos families were the second, third and fifth largest donors to the Republican party.
Dick DeVos, son of Amway founder Richard DeVos and past president of the company, served as Finance Chairman of the Republican National Committee, and his wife Betsy DeVos served as chair of the Michigan Republican Party from 1996 to 2000 and 2003 to 2005.
In May 2005, Dick DeVos ran against incumbent Governor Jennifer Granholm in Michigan's 2006 gubernatorial election. DeVos was defeated by Granholm, who won 56% of the popular vote to his 42%.
In August 2012, gay rights activist Fred Karger began a movement to boycott Amway in protest of the contribution from a private foundation of Amway President Doug DeVos to the National Organization for Marriage, a political organization which opposes legalization of same-sex marriage in the United States.
Betsy DeVos was United States Secretary of Education from 2017 to 2021 under the first Trump administration.
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Amway
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Religion
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Religion
Several sources have commented on the promotion of Christian conservative ideology within the Amway organization. Mother Jones magazine described the Amway distributor force as "heavily influenced by the company's dual themes of Christian morality and free enterprise" and operating "like a private political army". In The Cult of Free Enterprise, Stephen Butterfield, who spent time in the Yager group within Amway, wrote "[Amway] sells a marketing and motivational system, a cause, a way of life, in a fervid emotional atmosphere of rallies and political religious revivalism." Philadelphia City Paper correspondent Maryam Henein stated that "The language used in motivational tools for Amway frequently echoes or directly quotes the Bible, with the unstated assumption of a shared Christian perspective."
Businessweek correspondents Bill Vlasic and Beth Regan characterized the founding families of Amway as "fervently conservative, fervently Christian, and hugely influential in the Republican Party", noting that "Rich DeVos charged up the troops with a message of Christian beliefs and rock-ribbed conservatism."
High-ranking Amway leaders such as Richard DeVos and Dexter Yager were owners and members of the board of Gospel Films, a producer of movies and books geared toward conservative Christians, as well as co-owners (along with Salem Communications) of a right-wing, Christian nonprofit called Gospel Communications International. Yager, interviewed on 60 Minutes in 1983, admitted that he promotes Christianity through his Amway group, but stated that this might not be the case in other Amway groups.
Rolling Stone's Bob Moser reported that former Amway CEO and co-founder Richard DeVos is connected with the Dominionist political movement in the United States. Moser states that DeVos was a supporter of the late D. James Kennedy, giving more than $5 million to Kennedy's Coral Ridge Ministries."The Crusaders" Bob Moser, April 7, 2005, Rolling Stone DeVos was also a founding member and two-time president of the Council for National Policy, a right-wing Christian organization.
Sociologist David G. Bromley calls Amway a "quasi-religious corporation" having sectarian characteristics.Transformative movements and quasi-religious corporations: the case of Amway, by David G. Bromley. In Sacred Companies: Organizational Aspects of Religion and Religious Aspects of Organizations, edited by Nicholas Jay Demerath, Peter Dobkin Hall, Terry Schmitt and Rhys H. Williams, pages 349–363. Oxford University Press, 1998 Bromley and Anson Shupe view Amway as preaching the gospel of prosperity.Rebottling the Elixir: The Gospel of Prosperity in America's Religioeconomic Corporations, by David G. Bromley and Anson Shupe. In In Gods we trust: new patterns of religious pluralism in America, edited by Thomas Robbins and Dick Anthony, pages 233–254. Transaction Publishers, 1990 Patralekha Bhattacharya and Krishna Kumar Mehta, reasoned that although some critics have referred to organizations such as Amway as "cults" and have speculated that they engage in "mind control", there are other explanations that could account for the behavior of distributors. Namely, continued involvement of distributors despite minimal economic return may result from social satisfaction compensating for diminished economic satisfaction.Socialization in network marketing organizations: is it cult behavior? by Patralekha Bhattacharya and Krishna Kumar Mehta, Journal of Socio-Economics. 29(4):361–374.
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Amway
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Chamber of commerce
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Chamber of commerce
Amway co-founder Jay Van Andel (in 1980), and later his son Steve Van Andel (in 2001), were elected by the board of directors of the United States Chamber of Commerce to be the chairman of the private American lobbying organization.
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Amway
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Accreditation program
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Accreditation program
In 2006, Amway (then Quixtar in North America) introduced its Professional Development Accreditation Program in response to concerns surrounding business support materials (BSM), including books, tapes and meetings. In 2010 this was superseded by its Accreditation Plus program to ensure that all BSM content is consistent with Amway's quality assurance standards, which approved providers of BSM must abide by. The quality assurance standards state that
Promoting political causes or other issues of a personal nature in the Amway Business environment is not permitted
Spiritual references are not allowed as the message or focus and presenters may not use the stage as a platform to promote religious and/or personal social beliefs
Endorsement or denouncement of specific candidates, political parties, and/or issues, unless specifically related to the operation of an Amway Business is not allowed.
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Amway
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Pyramid scheme allegations
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Pyramid scheme allegations
Robert Carroll, of the Skeptic's Dictionary, has described Amway as a "legal pyramid scheme", and has said that the quasi-religious devotion of its affiliates is used by the company to conceal poor performance rates by distributors.
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Amway
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FTC investigation
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FTC investigation
In a 1979 ruling, the Federal Trade Commission found that Amway did not fit the definition of a pyramid scheme because (a) distributors were not paid to recruit people, (b) it did not require distributors to buy a large stock of unmoving inventory, (c) distributors were required to maintain retail sales (at least 10 per month), and (d) the company and all distributors were required to accept returns of excess inventory from down-level distributors.
The FTC did, however, find Amway "guilty of price-fixing and making exaggerated income claims"; the company was ordered to stop retail price fixing and allocating customers among distributors and was prohibited from misrepresenting the amount of profit, earnings or sales its distributors are likely to achieve with the business. Amway was ordered to accompany any such statements with the actual averages per distributor, pointing out that more than half of the distributors do not make any money, with the average distributor making less than $100 per month. The order was violated with a 1986 ad campaign, resulting in a $100,000 fine.
Studies of independent consumer watchdog agencies have shown that between 990 and 999 of 1000 participants in MLMs that use Amway-type pay plans in fact lose money.Amway Forever: The Amazing Story of a Global Business Phenomenon , p. 178 According to The Skeptic's Dictionary, "In the United States, the Federal Trade Commission requires Amway to label its products with the message that 54% of Amway recruits make nothing and the rest earn on average $65 a month."
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Amway
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Amway India
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Amway India
In September 2006, following a public complaint, Andhra Pradesh and Telangana state police (CID) initiated raids and seizures against Amway distributors in the state, and submitted a petition against them, claiming the company violated the Prize Chits and Money Circulation Schemes (Banning) Act. They shut down all corporate offices associated with the Amway organization including the offices of some Amway distributors. The enforcement said that the business model of the company is illegal. The Reserve Bank of India (RBI) had notified the police that Amway in India may be violating certain laws regarding a "money circulation scheme" and the IB Times article writes that "some say ... Amway is really more about making money from recruiting people to become distributors, as opposed to selling products". In 2008, the state government of Andhra Pradesh enacted a ban on Amway media advertisements.
On August 6, 2011, Kerala Police sealed the offices of Amway at Kozhikode, Kannur, Kochi, Kottayam, Thrissur, Kollam and Thiruvananthapuram following complaints. In November 2012, the Economic Offences Wing of Kerala Police conducted searches at the offices of Amway at Kozhikode, Thrissur and Kannur as part of its crackdown on money chain activities and closed down the firm's warehouses at these centres. Products valued at 21.4 million rupees (about US$400,000 at the time) were also seized. Later, Area manager of Amway, P. M. Rajkumar, who was arrested following searches was remanded in judicial custody for 14 days.
On May 27, 2013, Crime Branch officials of Kerala Police arrested William S. Pinckney, Managing Director & CEO of Amway India Enterprises along with two other directors of the company from Kozhikode. The three were arrested on charges of running a pyramid scheme. They were granted bail the next day and the business was unaffected. On June 8, 2013, Kozhikode Court lifted the freeze on Amway offices in Kerala. On May 26, 2014, Pinckney was arrested by Andhra Pradesh police on the basis of a consumer complaint that alleged unethical circulation of money by Amway. He was subsequently arrested in other criminal cases registered against him in the state on allegations of financial irregularities by the company. Pinckney was jailed for two months until being released on bail.
In 2017, a Chandigarh court framed charges, under Section 420 of the Indian Penal Code and the Prize Chits and Money Circulation Scheme (Banning) Act, against two directors of Amway India, William Scot Pinckney and Prithvai Raj Bijlani. This was based on a cheating case filed by eight complainants in 2002, following which the Economic Offences Wing had filed chargesheet in 2012. A revision plea moved by the two Amway officials against the framed charges was dismissed in 2018.
In April 2022, the Enforcement Directorate attached both movable and immovable assets of Amway India worth including the firm's factory in Dindigul along with bank accounts under the Prevention of Money Laundering Act (PMLA).
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Amway
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U.S. class action settlement
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U.S. class action settlement
On November 3, 2010, Amway announced that it had agreed to pay $56 million—$34 million in cash and $22 million in products—to settle a class action that had been filed in Federal District Court in California in 2007. The class action, which had been brought against Quixtar and several of its top-level distributors, alleged fraud, racketeering, and that the defendants operated as an illegal pyramid scheme.
Amway, while noting that the settlement is not an admission of wrongdoing or liability, acknowledged that it had made changes to its business operations as a result of the lawsuit. The settlement is subject to approval by the court, which was expected in early 2011. The economic value of the settlement, including the changes Amway made to its business model, totals $100 million.
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Amway
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Lobbying for deregulation
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Lobbying for deregulation
The DeVoses supported an amendment to the US House of Representatives' omnibus Financial Services and General Government Appropriations bill for fiscal year 2018 by US Representative John Moolenaar that would have limited the ability of the FTC to investigate whether MLMs are pyramid schemes. The amendment would have barred the Treasury Department, the Justice Department, the Small Business Administration, the Securities and Exchange Commission, the FTC, or any other agencies from using any monies to take enforcement actions against pyramid operations for the fiscal year. It also adopted provisions from H.R. 3409, the so-called "Anti-Pyramid Scheme Promotion Act of 2016", which would blur the lines between legitimate MLM activity and pyramid schemes established under the original 1979 FTC case by deeming sales made to people inside the company as sales to an "ultimate user," thus erasing the key distinction made in the ruling between sales to actual consumers of a product and sales made to members of the MLM network as part of recruitment of members or to qualify for commissions. The amendment was opposed by a coalition of consumer interest groups including Consumer Action, the Consumer Federation of America, Consumers Union (the publisher of Consumer Reports magazine), Consumer Watchdog, the National Consumers League, and the United States Public Interest Research Group (US PIRG), as well as Truth in Advertising (TINA.org) in its original incarnation.
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Amway
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Other legal actions
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Other legal actions
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Amway
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Canadian tax fraud case
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Canadian tax fraud case
In 1982, Amway co-founders, Richard M. DeVos and Jay Van Andel, along with Amway's executive vice president for corporate services, William J. Discher Jr., were indicted in Canada on several criminal charges, including allegations that they underreported the value of goods brought into the country and had defrauded the Canadian government of more than $28 million from 1965 to 1980. The charges were dropped in 1983 after Amway and its Canadian subsidiary pleaded guilty to criminal customs fraud charges. The companies paid a fine of $25 million CAD, the largest fine ever imposed in Canada at the time. In 1989, the company settled the outstanding customs duties for $45 million CAD.
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Amway
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RIAA lawsuit
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RIAA lawsuit
The Recording Industry Association of America (RIAA), as part of its anti-piracy efforts, sued Amway and several distributors in 1996, alleging that copyrighted music was used on "highly profitable" training videotapes. Amway denied wrongdoing, blaming the case on a misunderstanding by distributors, and settled the case out of court for $9 million.
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Amway
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Amway UK
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Amway UK
In 2007, Amway's operations were halted in the United Kingdom and Ireland following a yearlong investigation by the UK Department of Trade and Industry, which moved to have Amway banned on the basis that the company had employed deceptive marketing, presented inflated earnings estimates, and lured distributors into buying bogus "motivation and training" tools. In 2008, a UK judge dismissed government claims against Amway's operations, saying major reforms in the prior year (which included banning non-Amway-approved motivational events and materials) had fixed company faults that favoured selling training materials over products and misrepresented earnings. However, the judge also expressed his belief that Amway allowed "misrepresentations" of its business by independent sellers in years past and failed to act decisively against the misrepresentations.
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Amway
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''Welcome to Life'' (Poland)
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Welcome to Life (Poland)
In 1997, Amway Poland and Network TwentyOne separately sued the makers of a Polish film, Welcome to Life (), for defamation and copyright violations. Henryk Dederko (the director) and producer were later acquitted on the charge of disseminating false information. The film, banned for 12 years, was one of the highly anticipated movies of 2009's Warsaw Film Festival and was dubbed by the promoters as a "scary movie about brainwashing" It was said to depict hard-sell "pep rallies", and to include statements from distributors that meetings had a similar tone to meetings of the Communist Party before it lost power in Poland. Methods of recruitment that confusingly resembled those of a sect were also described. A bestseller on the local video black market, the film was banned while the suit proceeded.
In 2001 a regional court ruled in favor of Network 21; however, in 2004 the Warsaw Regional Court dismissed Amway's civil lawsuit. On appeal Amway won the case and the producers were ordered to pay a fine to a children's charity and publish a public apology. the film was still banned due to an ongoing case brought by "private individuals" ridiculed in the film.
On December 18, 2012, the court ruled that film can be screened, but the makers have to remove "untrue information", as the screen near the end of the movie stated that 30% of company income is generated by sales of training materials and that the vast majority of its profits are shared only by the tiny fraction of top distributors. This is not the only court case, so the film is still banned on other grounds.
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Amway
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Dr. Phil and Shape Up
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Dr. Phil and Shape Up
In March 2004, TV personality Phil McGraw (a.k.a. Dr. Phil) pulled his "Shape Up" line of supplements off the market in the face of an investigation by the U.S. Federal Trade Commission (FTC). The supplements were manufactured by CSA Nutraceuticals, a subsidiary of Alticor's Access Business Group. The FTC later dropped the probe, but in October 2005 a class-action lawsuit was filed against McGraw by several people who used the products and claimed that the supplements, which cost $120 per month, did not stimulate weight loss. In September 2006, a $10.5 million settlement was reached, in which Alticor agreed to provide $4.5 million in cash and $6 million in Nutrilite products to disgruntled users of Shape Up.
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Amway
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Procter & Gamble
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Procter & Gamble
Some Amway distributors distributed an urban legend that the (old) Procter & Gamble service mark was in fact a Satanic symbol or that the CEO of P&G is himself a practicing Satanist. (In some variants of the story, it is also claimed that the CEO of Procter & Gamble donated "satanic tithes" to the Church of Satan.) Procter & Gamble alleged that several Amway distributors were behind a resurgence of the story in the 1990s and sued several independent Amway distributors and the company for defamation and slander. The distributors had used Amway's Amvox voice messaging service to send the rumor to their downline distributors in April 1995. By 2003, after more than a decade of lawsuits in multiple states, all allegations against Amway and Amway distributors had been dismissed. In October 2005, a Utah appeals court reversed part of the decision dismissing the case against the four Amway distributors, and remanded it to the lower court for further proceedings.03-4234 – Procter & Gamble Co. V. Haugen – October 19, 2005 In the lawsuit against the four former Amway distributors, Procter & Gamble was awarded $19.25 million by a U.S. District Court jury in Salt Lake City on March 20, 2007. On November 24, 2008, the case was officially settled. "It's hard to imagine they'd pursue it this long, especially after all the retractions we put out," said distributor Randy Haugen, a 53-year-old Ogden, Utah, businessman who maintained P&G was never able to show how it was harmed by the rumors. "We are stunned. All of us."
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Amway
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Regulatory violations in Vietnam
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Regulatory violations in Vietnam
In January 2017, the Vietnam Ministry of Industry and Trade determined that Amway Vietnam had violated federal regulations by engaging in unauthorized multi-level marketing.
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Amway
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Other issues
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Other issues
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Amway
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Cultism
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Cultism
Some Amway distributor groups have been accused of using "cult-like" tactics to attract new distributors and keep them involved and committed."Hidden persuaders", by Tony Thompson. Time Out, June 22–29, 1994The power of positive inspiration by Paul Klebnikov. Forbes, December 9, 1991 Allegations include resemblance to a Big Brother organization with a paranoid attitude toward insiders critical of the organization, seminars and rallies resembling religious revival meetings, and enormous involvement of distributors despite minimal incomes. An examination of the 1979–1980 tax records in the state of Wisconsin showed that the Direct Distributors reported a net loss of $918 on average.Quasi religious corporations: A new integration of religion and capitalism? by David G. Bromley. In Religion and the Transformations of Capitalism: Comparative Approaches, edited by Richard H. Roberts, pages 135–160. Routledge, 1995
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Amway
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''Dateline NBC''
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Dateline NBC
In 2004, Dateline NBC featured a critical report based on a yearlong undercover investigation of business practices of Quixtar. The report noted that the average distributor makes only about $1,400 per year and that many of the "high level distributors singing the praises of Quixtar" are actually "making most of their money by selling motivational books, tapes and seminars; not Quixtar's cosmetics, soaps, and electronics":
In fact, about twenty high level distributors are part of an exclusive club; one that those hundreds of thousands of other distributors don't get to join. For years only a privileged few, including Bill Britt, have run hugely profitable businesses selling all those books, tapes and seminars; things the rank and file distributors can't sell themselves but, are told over and over again, they need to buy in order to succeed.
The program said that a Quixtar recruiter featured in the report made misleading and inconsistent statements about Quixtar earnings during a recruitment meeting and had an outstanding arrest warrant for cocaine possession from the mid-90s.
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Amway
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See also
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See also
List of multi-level marketing companies
Morrison v. Amway Corp.
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Amway
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References
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References
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Amway
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Books
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Books
American Victory: The Real Story of Today's Amway, published April 1997 by Chapel & Croft Publishing;
Amway: The Cult of Free Enterprise, published December 1, 1985, by South End Press;
Amway Forever: The Amazing Story of a Global Business Phenomenon (), published August 2011 by John Wiley & Sons;
Amway: The True Story of the Company That Transformed the Lives of Millions, published September 1, 1999, by Berkley Publishing Group;
An Enterprising Life, published 1998 by HarperCollins;
An Uncommon Freedom: The Amway Experience and Why It Grows, published 1982 by Revell;
Commitment to excellence: The Remarkable Amway Story, published 1986 by Benjamin;
Compassionate Capitalism: People Helping People Help Themselves, published September 1994 by Penguin Books;
Empire of Freedom: The Amway Story and What It Means to You, published September 3, 1997, by Prima Lifestyles;
How to Be Like Rich DeVos: Succeeding with Integrity in Business and Life, published 2004 by Health Communications, Inc;
Merchants of Deception: An Insider's Chilling Look at the Worldwide, Multi-Billion Dollar Conspiracy of Lies That Is Amway and Its Motivational Organizations, published 2009 by BookSurge Publishing;
The First Eleven: The Growth of Amway in Britain Through the Lives of Its Local Heroes, published 1984 by AM Publishing;
Promises to Keep: The Amway Phenomenon and How It Works, published 1986 by Berkley Books;
The Direct Selling Revolution: Understanding the Growth of the Amway Corporation, published 1993 by WileyBlackwell;
The Possible Dream: A Candid Look At Amway, published 1977 by Revell;
Profiles of the American Dream: Rich DeVos and Jay Van Andel and the Remarkable Beginnings of Amway, 1997 by Premiere Films
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Amway
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External links
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External links
Category:1959 establishments in Michigan
Category:Companies based in Kent County, Michigan
Category:Multi-level marketing companies
Category:Privately held companies based in Michigan
Category:Privately held companies of the United States
Category:Retail companies established in 1959
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Amway
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Table of Content
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short description, History, Founding, International expansion, Quixtar, Global markets, Amway Australia, Amway China, Brands, Household cleaners, Health and beauty, Artistry, Nutrilite, eSpring, XS, Ditto Delivery, Business model, Sports sponsorships, Politics and culture, Political contributions, Religion, Chamber of commerce, Accreditation program, Pyramid scheme allegations, FTC investigation, Amway India, U.S. class action settlement, Lobbying for deregulation, Other legal actions, Canadian tax fraud case, RIAA lawsuit, Amway UK, ''Welcome to Life'' (Poland), Dr. Phil and Shape Up, Procter & Gamble, Regulatory violations in Vietnam, Other issues, Cultism, ''Dateline NBC'', See also, References, Books, External links
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Adam Smith
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Short description
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Adam Smith (baptised 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as the "father of economics"——— or the "father of capitalism",———— he wrote two classic works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, often abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work that treats economics as a comprehensive system and an academic discipline. Smith refuses to explain the distribution of wealth and power in terms of God's will and instead appeals to natural, political, social, economic, legal, environmental and technological factors and the interactions among them. Among other economic theories, the work introduced Smith's idea of absolute advantage.
Smith studied social philosophy at the University of Glasgow and at Balliol College, Oxford, where he was one of the first students to benefit from scholarships set up by fellow Scot John Snell. After graduating, he delivered a successful series of public lectures at the University of Edinburgh, leading him to collaborate with David Hume during the Scottish Enlightenment. Smith obtained a professorship at Glasgow, teaching moral philosophy and during this time, wrote and published The Theory of Moral Sentiments. In his later life, he took a tutoring position that allowed him to travel throughout Europe, where he met other intellectual leaders of his day.
As a reaction to the common policy of protecting national markets and merchants through minimizing imports and maximizing exports, what came to be known as mercantilism, Smith laid the foundations of classical free market economic theory. The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, he developed the concept of division of labour and expounded upon how rational self-interest and competition can lead to economic prosperity. Smith was controversial in his day and his general approach and writing style were often satirised by writers such as Horace Walpole.
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Adam Smith
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Biography
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Biography
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Adam Smith
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Early life
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Early life
Smith was born in Kirkcaldy, in Fife, Scotland. His father, Adam Smith senior, was a Scottish Writer to the Signet (senior solicitor), advocate and prosecutor (judge advocate) and also served as comptroller of the customs in Kirkcaldy. Smith's mother was born Margaret Douglas, daughter of the landed Robert Douglas of Strathendry, also in Fife; she married Smith's father in 1720. Two months before Smith was born, his father died, leaving his mother a widow. The date of Smith's baptism into the Church of Scotland at Kirkcaldy was 5 June 1723 and this has often been treated as if it were also his date of birth, which is unknown.
Although few events in Smith's early childhood are known, the Scottish journalist John Rae, Smith's biographer, recorded that Smith was abducted by Romani at the age of three and released when others went to rescue him. Smith was close to his mother, who probably encouraged him to pursue his scholarly ambitions. He attended the Burgh School of Kirkcaldy—characterised by Rae as "one of the best secondary schools of Scotland at that period"—from 1729 to 1737, he learned Latin, mathematics, history, and writing.
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Adam Smith
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Formal education
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Formal education
Smith entered the University of Glasgow at age 14 and studied moral philosophy under Francis Hutcheson. Here he developed his passion for the philosophical concepts of reason, civilian liberties, and free speech. In 1740, he was the graduate scholar presented to undertake postgraduate studies at Balliol College, Oxford, under the Snell Exhibition.
Smith considered the teaching at Glasgow to be far superior to that at Oxford, which he found intellectually stifling. In Book V, Chapter II of The Wealth of Nations, he wrote: "In the University of Oxford, the greater part of the public professors have, for these many years, given up altogether even the pretence of teaching." Smith is also reported to have complained to friends that Oxford officials once discovered him reading a copy of David Hume's A Treatise of Human Nature, and they subsequently confiscated his book and punished him severely for reading it. According to William Robert Scott, "The Oxford of [Smith's] time gave little if any help towards what was to be his lifework." Nevertheless, he took the opportunity while at Oxford to teach himself several subjects by reading many books from the shelves of the large Bodleian Library. When Smith was not studying on his own, his time at Oxford was not a happy one, according to his letters. Near the end of his time there, he began suffering from shaking fits, probably the symptoms of a nervous breakdown. He left Oxford University in 1746, before his scholarship ended.
In Book V of The Wealth of Nations, Smith comments on the low quality of instruction and the meager intellectual activity at English universities, when compared to their Scottish counterparts. He attributes this both to the rich endowments of the colleges at Oxford and Cambridge, which made the income of professors independent of their ability to attract students, and to the fact that distinguished men of letters could make an even more comfortable living as ministers of the Church of England.
thumb|upright=0.75|Portrait of Smith's mother, Margaret Douglas
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Adam Smith
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Teaching career
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Teaching career
Smith began delivering public lectures in 1748 at the University of Edinburgh, sponsored by the Philosophical Society of Edinburgh under the patronage of Lord Kames. His lecture topics included rhetoric and belles-lettres,Smith, A. ([1762] 1985). Lectures on Rhetoric and Belles Lettres [1762]. vol. IV of the Glasgow Edition of the Works and Correspondence of Adam Smith (Indianapolis: Liberty Fund, 1984). Retrieved 16 February 2012 and later the subject of "the progress of opulence". On this latter topic, he first expounded his economic philosophy of "the obvious and simple system of natural liberty". While Smith was not adept at public speaking, his lectures met with success.
In 1750, Smith met the philosopher David Hume, who was his senior by more than a decade. In their writings covering history, politics, philosophy, economics, and religion, Smith and Hume shared closer intellectual and personal bonds than with other important figures of the Scottish Enlightenment.
In 1751, Smith earned a professorship at Glasgow University teaching logic courses, and in 1752, he was elected a member of the Philosophical Society of Edinburgh, having been introduced to the society by Lord Kames. When the head of Moral Philosophy in Glasgow died the next year, Smith took over the position. He worked as an academic for the next 13 years, which he characterised as "by far the most useful and therefore by far the happiest and most honorable period [of his life]".
Smith published The Theory of Moral Sentiments in 1759, embodying some of his Glasgow lectures. This work was concerned with how human morality depends on sympathy between agent and spectator, or the individual and other members of society. Smith defined "mutual sympathy" as the basis of moral sentiments. He based his explanation, not on a special "moral sense" as the Third Lord Shaftesbury and Hutcheson had done, nor on utility as Hume did, but on mutual sympathy, a term best captured in modern parlance by the 20th-century concept of empathy, the capacity to recognise feelings that are being experienced by another being.
thumb|upright|François Quesnay, one of the leaders of the physiocratic school of thought|alt=A drawing of a man sitting down
Following the publication of The Theory of Moral Sentiments, Smith became so popular that many wealthy students left their schools in other countries to enroll at Glasgow to learn under Smith. At this time, Smith began to give more attention to jurisprudence and economics in his lectures and less to his theories of morals. For example, Smith lectured that the cause of increase in national wealth is labour, rather than the nation's quantity of gold or silver, which is the basis for mercantilism, the economic theory that dominated Western European economic policies at the time.
In 1762, the University of Glasgow conferred on Smith the title of Doctor of Laws (LL.D.). At the end of 1763, he obtained an offer from British chancellor of the Exchequer Charles Townshend—who had been introduced to Smith by David Hume—to tutor his stepson, Henry Scott, the young Duke of Buccleuch as preparation for a career in international politics. Smith resigned from his professorship in 1764 to take the tutoring position. He subsequently attempted to return the fees he had collected from his students because he had resigned partway through the term, but his students refused.
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Adam Smith
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Tutoring, travels, European intellectuals
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Tutoring, travels, European intellectuals
Smith's tutoring job entailed touring Europe with Scott, during which time he educated Scott on a variety of subjects. He was paid £300 per year (plus expenses) along with a £300 per year pension; roughly twice his former income as a teacher. Smith first travelled as a tutor to Toulouse, France, where he stayed for a year and a half. According to his own account, he found Toulouse to be somewhat boring, having written to Hume that he "had begun to write a book to pass away the time". After touring the south of France, the group moved to Geneva, where Smith met with the philosopher Voltaire.
thumb|upright|David Hume was a friend and contemporary of Smith's.|alt=Philosopher David Hume, painting
From Geneva, the party moved to Paris. Here, Smith met American publisher and diplomat Benjamin Franklin, who a few years later would lead the opposition in the American colonies against four British resolutions from Charles Townshend (in history known as the Townshend Acts), which threatened American colonial self-government and imposed revenue duties on a number of items necessary to the colonies. Smith discovered the Physiocracy school founded by François Quesnay and discussed with their intellectuals. Physiocrats were opposed to mercantilism, the dominating economic theory of the time, illustrated in their motto Laissez faire et laissez passer, le monde va de lui même! (Let do and let pass, the world goes on by itself!).
The wealth of France had been virtually depleted by Louis XIV and Louis XV in ruinous wars, and was further exhausted in aiding the American revolutionary soldiers, against the British. Given that the British economy of the day yielded an income distribution that stood in contrast to that which existed in France, Smith concluded that "with all its imperfections, [the Physiocratic school] is perhaps the nearest approximation to the truth that has yet been published upon the subject of political economy."Smith, A., 1976, The Wealth of Nations edited by R. H. Campbell and A. S. Skinner, The Glasgow edition of the Works and Correspondence of Adam Smith, vol. 2b, p. 678. The distinction between productive versus unproductive labour—the physiocratic classe steril—was a predominant issue in the development and understanding of what would become classical economic theory.
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Adam Smith
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Later years
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Later years
In 1766, Henry Scott's younger brother died in Paris, and Smith's tour as a tutor ended shortly thereafter. Smith returned home that year to Kirkcaldy, and he devoted much of the next decade to writing his magnum opus. There, he befriended Henry Moyes, a young blind man who showed precocious aptitude. Smith secured the patronage of David Hume and Thomas Reid in the young man's education.Dr James Currie to Thomas Creevey, 24 February 1793, Lpool RO, Currie MS 920 CUR In May 1767, Smith was elected fellow of the Royal Society of London,Smith was elected a Fellow of the Royal Society on 21 May 1767, but was not admitted until 27 May 1773. See ; and was elected a member of the Literary Club in 1775. The Wealth of Nations was published in 1776 and was an instant success, selling out its first edition in only six months.
In 1778, Smith was appointed to a post as commissioner of customs in Scotland and went to live with his mother (who died in 1784) in Panmure House in Edinburgh's Canongate. Five years later, as a member of the Philosophical Society of Edinburgh when it received its royal charter, he automatically became one of the founding members of the Royal Society of Edinburgh. From 1787 to 1789, he occupied the honorary position of Lord Rector of the University of Glasgow.
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Adam Smith
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Death
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Death
thumb|upright|right|A commemorative plaque for Smith is located in Smith's home town of Kirkcaldy.|alt=A plaque of Smith
Smith died in the northern wing of Panmure House in Edinburgh on 17 July 1790 after a painful illness. His body was buried in the Canongate Kirkyard. On his deathbed, Smith expressed disappointment that he had not achieved more.
Smith's literary executors were two friends from the Scottish academic world: the physicist and chemist Joseph Black and the pioneering geologist James Hutton. Smith left behind many notes and some unpublished material, but gave instructions to destroy anything that was not fit for publication. He mentioned an early unpublished History of Astronomy as probably suitable, and it duly appeared in 1795, along with other material such as Essays on Philosophical Subjects.
Smith's library went by his will to David Douglas, Lord Reston (son of his cousin Colonel Robert Douglas of Strathendry, Fife), who lived with Smith. It was eventually divided between his two surviving children, Cecilia Margaret (Mrs. Cunningham) and David Anne (Mrs. Bannerman). On the death in 1878 of her husband, the Reverend W. B. Cunningham of Prestonpans, Mrs. Cunningham sold some of the books. The remainder passed to her son, Professor Robert Oliver Cunningham of Queen's College, Belfast, who presented a part to the library of Queen's College. After his death, the remaining books were sold. On the death of Mrs. Bannerman in 1879, her portion of the library went intact to the New College (of the Free Church) in Edinburgh and the collection was transferred to the University of Edinburgh Main Library in 1972.
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Adam Smith
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Personality and beliefs
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Personality and beliefs
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Adam Smith
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Character
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Character
thumb|Portrait of Smith by John Kay, 1790|alt=A drawing of a man standing up, with one hand holding a cane and the other pointing at a book
Not much is known about Smith's personal views beyond what can be deduced from his published articles. His personal papers were destroyed after his death, per his request. He never married, and seems to have maintained a close relationship with his mother, with whom he lived after his return from France and who died six years before him.
Smith was described by several of his contemporaries and biographers as comically absent-minded, with peculiar habits of speech and gait, and a smile of "inexpressible benignity". He was known to talk to himself, a habit that began during his childhood when he would smile in rapt conversation with invisible companions. He also had occasional spells of imaginary illness, and he is reported to have had books and papers placed in tall stacks in his study. According to one story, Smith took Charles Townshend on a tour of a tanning factory, and while discussing free trade, Smith walked into a huge tanning pit from which he needed help to escape. He is also said to have put bread and butter into a teapot, drunk the concoction, and declared it to be the worst cup of tea he had ever had. According to another account, Smith distractedly went out walking in his nightgown and ended up outside of town, before nearby church bells brought him back to reality.
James Boswell, who was a student of Smith's at Glasgow University, and later knew him at the Literary Club, says that Smith thought that speaking about his ideas in conversation might reduce the sale of his books, so his conversation was unimpressive. According to Boswell, he once told Sir Joshua Reynolds, that "he made it a rule when in company never to talk of what he understood".Boswell's Life of Samuel Johnson, 1780.
Smith has been alternatively described as someone who "had a large nose, bulging eyes, a protruding lower lip, a nervous twitch, and a speech impediment" and one whose "countenance was manly and agreeable". Smith is said to have acknowledged his looks at one point, saying, "I am a beau in nothing but my books." Smith rarely sat for portraits, so almost all depictions of him created during his lifetime were drawn from memory. The best-known portraits of Smith are the profile by James Tassie and two etchings by John Kay. The line engravings produced for the covers of 19th-century reprints of The Wealth of Nations were based largely on Tassie's medallion.
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Adam Smith
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Religious views
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Religious views
Considerable scholarly debate has occurred about the nature of Smith's religious views. His father had shown a strong interest in Christianity and belonged to the moderate wing of the Church of Scotland, and the fact that he received the Snell Exhibition suggests that he may have gone to Oxford with the intention of pursuing a career in the Church of England.
Anglo-American economist Ronald Coase challenged the view that Smith was a deist, based on the fact that Smith's writings never explicitly invoke God as an explanation of the harmonies of the natural or the human worlds. According to Coase, though Smith does sometimes refer to the "Great Architect of the Universe", later scholars such as Jacob Viner have "very much exaggerated the extent to which Adam Smith was committed to a belief in a personal God", a belief for which Coase finds little evidence in passages such as the one in the Wealth of Nations in which Smith writes that the curiosity of mankind about the "great phenomena of nature", such as "the generation, the life, growth, and dissolution of plants and animals", has led men to "enquire into their causes", and that "superstition first attempted to satisfy this curiosity, by referring all those wonderful appearances to the immediate agency of the gods. Philosophy afterwards endeavoured to account for them, from more familiar causes, or from such as mankind were better acquainted with than the agency of the gods". Some authors argue that Smith's social and economic philosophy is inherently theological and that his entire model of social order is logically dependent on the notion of God's action in nature. Brendan Long argues that Smith was a theist, whereas according to professor Gavin Kennedy, Smith was "in some sense" a Christian.
Smith was also a close friend of David Hume, who, despite debate about his religious views in modern scholarship, was commonly characterised in his own time as an atheist. The publication in 1777 of Smith's letter to William Strahan, in which he described Hume's courage in the face of death in spite of his irreligiosity, attracted considerable controversy.
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Adam Smith
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Published works
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Published works
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Adam Smith
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''The Theory of Moral Sentiments''
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The Theory of Moral Sentiments
In 1759, Smith published his first work, The Theory of Moral Sentiments, sold by co-publishers Andrew Millar of London and Alexander Kincaid of Edinburgh. Smith continued making extensive revisions to the book until his death. Although The Wealth of Nations is widely regarded as Smith's most influential work, Smith himself is believed to have considered The Theory of Moral Sentiments to be a superior work.
In the work, Smith critically examines the moral thinking of his time, and suggests that conscience arises from dynamic and interactive social relationships through which people seek "mutual sympathy of sentiments." His goal in writing the work was to explain the source of mankind's ability to form moral judgment, given that people begin life with no moral sentiments at all. Smith proposes a theory of sympathy, in which the act of observing others and seeing the judgments they form of both others and oneself makes people aware of themselves and how others perceive their behaviour. The feedback received by an individual from perceiving (or imagining) others' judgment creates an incentive to achieve "mutual sympathy of sentiments" with them and leads people to develop habits, and then principles, of behaviour, which come to constitute one's conscience.
Some scholars have perceived a conflict between The Theory of Moral Sentiments and The Wealth of Nations; the former emphasises sympathy for others, while the latter focuses on the role of self-interest. In recent years, however, some scholarsWight, Jonathan B. Saving Adam Smith. Upper Saddle River: Prentic-Hall, Inc., 2002.Robbins, Lionel. A History of Economic Thought. Princeton: Princeton University Press, 1998.Brue, Stanley L., and Randy R. Grant. The Evolution of Economic Thought. Mason: Thomson Higher Education, 2007. of Smith's work have argued that no contradiction exists. They contend that in The Theory of Moral Sentiments, Smith develops a theory of psychology in which individuals seek the approval of the "impartial spectator" as a result of a natural desire to have outside observers sympathise with their sentiments. Rather than viewing The Theory of Moral Sentiments and The Wealth of Nations as presenting incompatible views of human nature, some Smith scholars regard the works as emphasising different aspects of human nature that vary depending on the situation. In the first part – The Theory of Moral Sentiments – he laid down the foundation of his vision of humanity and society. In the second – The Wealth of Nations – he elaborated on the virtue of prudence, which for him meant the relations between people in the private sphere of the economy. It was his plan to further elaborate on the virtue of justice in the third book. Otteson argues that both books are Newtonian in their methodology and deploy a similar "market model" for explaining the creation and development of large-scale human social orders, including morality, economics, as well as language.Otteson, James R. 2002, Adam Smith's Marketplace of Life. Cambridge: Cambridge University Press, 2002. Ekelund and Hebert offer a differing view, observing that self-interest is present in both works and that "in the former, sympathy is the moral faculty that holds self-interest in check, whereas in the latter, competition is the economic faculty that restrains self-interest."Ekelund, R. & Hebert, R. 2007, A History of Economic Theory and Method 5th ed. Waveland Press, United States, p. 105.
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Adam Smith
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''The Wealth of Nations''
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The Wealth of Nations
Disagreement exists between classical and neoclassical economists about the central message of Smith's most influential work: An Inquiry into the Nature and Causes of the Wealth of Nations (1776). Neoclassical economists emphasise Smith's invisible hand,Smith, A., 1976, The Wealth of Nations edited by R. H. Campbell and A. S. Skinner, The Glasgow edition of the Works and Correspondence of Adam Smith, vol. 2a, p. 456. a concept mentioned in the middle of his work – Book IV, Chapter II – and classical economists believe that Smith stated his programme for promoting the "wealth of nations" in the first sentences, which attributes the growth of wealth and prosperity to the division of labour. He elaborated on the virtue of prudence, which for him meant the relations between people in the private sphere of the economy. He planned to further elaborate on the virtue of justice in the third book.
Smith used the term "the invisible hand" in "History of Astronomy"Smith, A., 1980, The Glasgow edition of the Works and Correspondence of Adam Smith, vol. 3, p. 49, edited by W. P. D. Wightman and J. C. Bryce, Oxford: Clarendon Press. referring to "the invisible hand of Jupiter", and once in each of his The Theory of Moral SentimentsSmith, A., 1976, The Glasgow edition of the Works and Correspondence of Adam Smith, vol. 1, pp. 184–185, edited by D. D. Raphael and A. L. Macfie, Oxford: Clarendon Press. (1759) and The Wealth of NationsSmith, A., 1976, The Glasgow edition of the Works and Correspondence of Adam Smith, vol. 2a, p. 456, edited by R. H. Cambell and A. S. Skinner, Oxford: Clarendon Press. (1776). This last statement about "an invisible hand" has been interpreted in numerous ways.
thumb|Later building on the site where Smith wrote The Wealth of Nations|alt=A brown building
As every individual, therefore, endeavours as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. It is an affectation, indeed, not very common among merchants, and very few words need be employed in dissuading them from it.
Those who regard that statement as Smith's central message also quote frequently Smith's dictum:Smith, A., 1976, The Glasgow edition, vol. 2a, pp. 26–27.
It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.However, in The Theory of Moral Sentiments he had a more sceptical approach to self-interest as driver of behaviour:How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it.thumb|upright|The first page of The Wealth of Nations, 1776 London edition|alt=The first page of a book
In relation to Mandeville's contention that "Private Vices ... may be turned into Public Benefits",Mandeville, B., 1724, The Fable of the Bees, London: Tonson. Smith's belief that when an individual pursues his self-interest under conditions of justice, he unintentionally promotes the good of society. Self-interested competition in the free market, he argued, would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. Nevertheless, he was wary of businessmen and warned of their "conspiracy against the public or in some other contrivance to raise prices."Smith, A., 1976, The Glasgow edition, vol. 2a, pp. 145, 158. Again and again, Smith warned of the collusive nature of business interests, which may form cabals or monopolies, fixing the highest price "which can be squeezed out of the buyers."Smith, A., 1976, The Glasgow edition, vol. 2a, p. 79. Smith also warned that a business-dominated political system would allow a conspiracy of businesses and industry against consumers, with the former scheming to influence politics and legislation. Smith states that the interest of manufacturers and merchants "in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public ... The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never be adopted till after having been long and carefully examined, not only with the most scrupulous but with the most suspicious attention." Thus Smith's chief worry seems to be when business is given special protections or privileges from government; by contrast, in the absence of such special political favours, he believed that business activities were generally beneficial to the whole society:
It is the great multiplication of the production of all the different arts, in consequence of the division of labour, which occasions, in a well-governed society, that universal opulence which extends itself to the lowest ranks of the people. Every workman has a great quantity of his own work to dispose of beyond what he himself has occasion for; and every other workman being exactly in the same situation, he is enabled to exchange a great quantity of his own goods for a great quantity, or, what comes to the same thing, for the price of a great quantity of theirs. He supplies them abundantly with what they have occasion for, and they accommodate him as amply with what he has occasion for, and a general plenty diffuses itself through all the different ranks of society. (The Wealth of Nations, I.i.10)
The neoclassical interest in Smith's statement about "an invisible hand" originates in the possibility of seeing it as a precursor of neoclassical economics and its concept of general equilibrium; Samuelson's "Economics" refers six times to Smith's "invisible hand". To emphasise this connection, SamuelsonSamuelson, P. A./Nordhaus, William D., 1989, Economics, 13th ed., N.Y. et al.: McGraw-Hill, p. 825. quotes Smith's "invisible hand" statement substituting "general interest" for "public interest". SamuelsonSamuelson, P. A./Nordhaus, William D., 1989, idem, p. 825. concludes: "Smith was unable to prove the essence of his invisible-hand doctrine. Indeed, until the 1940s, no one knew how to prove, even to state properly, the kernel of truth in this proposition about perfectly competitive market."
thumb|170px|1922 printing of An Inquiry into the Nature and Causes of the Wealth of Nations, edited by Edwin Cannan
Conversely, classical economists see in Smith's first sentences his programme to promote "The Wealth of Nations". Using the physiocratical concept of the economy as a circular process, to secure growth the inputs of Period 2 must exceed the inputs of Period 1. Therefore, those outputs of Period 1 which are not used or usable as inputs of Period 2 are regarded as unproductive labour, as they do not contribute to growth. This is what Smith had heard in France from, among others, François Quesnay, whose ideas Smith was so impressed by that he might have dedicated The Wealth of Nations to him had he not died beforehand.Stewart, D., 1799, Essays on Philosophical Subjects, to which is prefixed An Account of the Life and Writings of the Author by Dugald Stewart, F.R.S.E., Basil; from the Transactions of the Royal Society of Edinburgh, Read by Mr. Stewart, 21 January, and 18 March 1793; in: The Glasgow edition of the Works and Correspondence of Adam Smith, 1982, vol. 3, pp. 304 ff. To this French insight that unproductive labour should be reduced to use labour more productively, Smith added his own proposal, that productive labour should be made even more productive by deepening the division of labour. Smith argued that deepening the division of labour under competition leads to greater productivity, which leads to lower prices and thus an increasing standard of living—"general plenty" and "universal opulence"—for all. Extended markets and increased production lead to the continuous reorganisation of production and the invention of new ways of producing, which in turn lead to further increased production, lower prices, and improved standards of living. Smith's central message is, therefore, that under dynamic competition, a growth machine secures "The Wealth of Nations". Smith's argument predicted Britain's evolution as the workshop of the world, underselling and outproducing all its competitors. The opening sentences of the "Wealth of Nations" summarise this policy:
The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes ... . [T]his produce ... bears a greater or smaller proportion to the number of those who are to consume it ... .[B]ut this proportion must in every nation be regulated by two different circumstances;
first, by the skill, dexterity, and judgment with which its labour is generally applied; and,
secondly, by the proportion between the number of those who are employed in useful labour, and that of those who are not so employed [emphasis added].Smith, A., 1976, vol. 2a, p. 10, idem
However, Smith added that the "abundance or scantiness of this supply too seems to depend more upon the former of those two circumstances than upon the latter."Smith, A., 1976, vol. 1, p. 10, para. 4
In The Wealth of Nations, Smith states four maxims of taxation: (1) equality (people must contribute to the support of the government in proportion to their abilities), (2) certainty (the time, manner, and quantity of tax imposed must be certain, transparent, and not arbitrary), (3) convenience for taxpayers, and (4) economy in tax collection. According to Smith, "It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more in that proportion".
Smith wrote that a government is duty-bound to provide public services that "support the whole of society" like provide public education, transportation, national defense, a justice system, public safety, and public infrastructure to support commerce.
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Adam Smith
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Other works
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Other works
thumb|upright|Smith's burial place in Canongate Kirkyard|alt=A burial
Shortly before his death, Smith had nearly all his manuscripts destroyed. In his last years, he seemed to have been planning two major treatises, one on the theory and history of law and one on the sciences and arts. The posthumously published Essays on Philosophical Subjects, a history of astronomy down to Smith's own era, plus some thoughts on ancient physics and metaphysics, probably contain parts of what would have been the latter treatise. Lectures on Jurisprudence were notes taken from Smith's early lectures, plus an early draft of The Wealth of Nations, published as part of the 1976 Glasgow Edition of the works and correspondence of Smith. Other works, including some published posthumously, include Lectures on Justice, Police, Revenue, and Arms (1763) (first published in 1896); and Essays on Philosophical Subjects (1795).The Glasgow edition of the Works and Correspondence of Adam Smith, 1982, 6 volumes
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Adam Smith
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Legacy
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Legacy
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Adam Smith
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In economics and moral philosophy
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In economics and moral philosophy
The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, Smith expounded how rational self-interest and competition can lead to economic prosperity. Smith was controversial in his own day and his general approach and writing style were often satirised by Tory writers in the moralising tradition of Hogarth and Swift, as a discussion at the University of Winchester suggests. In 2005, The Wealth of Nations was named among the 100 Best Scottish Books of all time.100 Best Scottish Books, Adam Smith Retrieved 31 January 2012
In light of the arguments put forward by Smith and other economic theorists in Britain, academic belief in mercantilism began to decline in Britain in the late 18th century. During the Industrial Revolution, Britain embraced free trade and Smith's laissez-faire economics, and via the British Empire, used its power to spread a broadly liberal economic model around the world, characterised by open markets, and relatively barrier-free domestic and international trade.L.Seabrooke (2006). "Global Standards of Market Civilization". p. 192. Taylor & Francis 2006
George Stigler attributes to Smith "the most important substantive proposition in all of economics". It is that, under competition, owners of resources (for example labour, land, and capital) will use them most profitably, resulting in an equal rate of return in equilibrium for all uses, adjusted for apparent differences arising from such factors as training, trust, hardship, and unemployment.Stigler, George J. (1976). "The Successes and Failures of Professor Smith," Journal of Political Economy, 84(6), pp. 1199–1213 [1202]. Also published as Selected Papers, No. 50 (PDF), Graduate School of Business, University of Chicago.
Paul Samuelson finds in Smith's pluralist use of supply and demand as applied to wages, rents, and profit a valid and valuable anticipation of the general equilibrium modelling of Walras a century later. Smith's allowance for wage increases in the short and intermediate term from capital accumulation and invention contrasted with Malthus, Ricardo, and Karl Marx in their propounding a rigid subsistence–wage theory of labour supply.Samuelson, Paul A. (1977). "A Modern Theorist's Vindication of Adam Smith," American Economic Review, 67(1), p. 42. Reprinted in J.C. Wood, ed., Adam Smith: Critical Assessments, pp. 498–509. Preview.
Joseph Schumpeter criticised Smith for a lack of technical rigour, yet he argued that this enabled Smith's writings to appeal to wider audiences: "His very limitation made for success. Had he been more brilliant, he would not have been taken so seriously. Had he dug more deeply, had he unearthed more recondite truth, had he used more difficult and ingenious methods, he would not have been understood. But he had no such ambitions; in fact he disliked whatever went beyond plain common sense. He never moved above the heads of even the dullest readers. He led them on gently, encouraging them by trivialities and homely observations, making them feel comfortable all along."
Classical economists presented competing theories to those of Smith, termed the "labour theory of value". Later Marxian economics descending from classical economics also use Smith's labour theories, in part. The first volume of Karl Marx's major work, Das Kapital, was published in German in 1867. In it, Marx focused on the labour theory of value and what he considered to be the exploitation of labour by capital.Roemer, J.E. (1987). "Marxian Value Analysis". The New Palgrave: A Dictionary of Economics, v. 3, 383.Mandel, Ernest (1987). "Marx, Karl Heinrich", The New Palgrave: A Dictionary of Economics v. 3, pp. 372, 376. The labour theory of value held that the value of a thing was determined by the labour that went into its production. This contrasts with the modern contention of neoclassical economics, that the value of a thing is determined by what one is willing to give up to obtain the thing.
thumb|The Adam Smith Theatre in Kirkcaldy|alt=A brown building
The body of theory later termed "neoclassical economics" or "marginalism" formed from about 1870 to 1910. The term "economics" was popularised by such neoclassical economists as Alfred Marshall as a concise synonym for "economic science" and a substitute for the earlier, broader term "political economy" used by Smith. This corresponded to the influence on the subject of mathematical methods used in the natural sciences.Clark, B. (1998). Political-economy: A comparative approach, 2nd ed., Westport, CT: Praeger. p. 32. Neoclassical economics systematised supply and demand as joint determinants of price and quantity in market equilibrium, affecting both the allocation of output and the distribution of income. It dispensed with the labour theory of value of which Smith was most famously identified with in classical economics, in favour of a marginal utility theory of value on the demand side and a more general theory of costs on the supply side.Campus, Antonietta (1987). "Marginalist Economics", The New Palgrave: A Dictionary of Economics, v. 3, p. 320
The bicentennial anniversary of the publication of The Wealth of Nations was celebrated in 1976, resulting in increased interest for The Theory of Moral Sentiments and his other works throughout academia. After 1976, Smith was more likely to be represented as the author of both The Wealth of Nations and The Theory of Moral Sentiments, and thereby as the founder of a moral philosophy and the science of economics. His homo economicus or "economic man" was also more often represented as a moral person. Additionally, economists David Levy and Sandra Peart in "The Secret History of the Dismal Science" point to his opposition to hierarchy and beliefs in inequality, including racial inequality, and provide additional support for those who point to Smith's opposition to slavery, colonialism, and empire. Emphasised also are Smith's statements of the need for high wages for the poor, and the efforts to keep wages low. In The "Vanity of the Philosopher: From Equality to Hierarchy in Postclassical Economics", Peart and Levy also cite Smith's view that a common street porter was not intellectually inferior to a philosopher, and point to the need for greater appreciation of the public views in discussions of science and other subjects now considered to be technical. They also cite Smith's opposition to the often expressed view that science is superior to common sense."The Vanity of the Philosopher: From Equality to Hierarchy" in Postclassical Economics
Smith also explained the relationship between growth of private property and civil government:
Men may live together in society with some tolerable degree of security, though there is no civil magistrate to protect them from the injustice of those passions. But avarice and ambition in the rich, in the poor the hatred of labour and the love of present ease and enjoyment, are the passions which prompt to invade property, passions much more steady in their operation, and much more universal in their influence. Wherever there is great property there is great inequality. For one very rich man there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many. The affluence of the rich excites the indignation of the poor, who are often both driven by want, and prompted by envy, to invade his possessions. It is only under the shelter of the civil magistrate that the owner of that valuable property, which is acquired by the labour of many years, or perhaps of many successive generations, can sleep a single night in security. He is at all times surrounded by unknown enemies, whom, though he never provoked, he can never appease, and from whose injustice he can be protected only by the powerful arm of the civil magistrate continually held up to chastise it. The acquisition of valuable and extensive property, therefore, necessarily requires the establishment of civil government. Where there is no property, or at least none that exceeds the value of two or three days' labour, civil government is not so necessary. Civil government supposes a certain subordination. But as the necessity of civil government gradually grows up with the acquisition of valuable property, so the principal causes which naturally introduce subordination gradually grow up with the growth of that valuable property. (...) Men of inferior wealth combine to defend those of superior wealth in the possession of their property, in order that men of superior wealth may combine to defend them in the possession of theirs. All the inferior shepherds and herdsmen feel that the security of their own herds and flocks depends upon the security of those of the great shepherd or herdsman; that the maintenance of their lesser authority depends upon that of his greater authority, and that upon their subordination to him depends his power of keeping their inferiors in subordination to them. They constitute a sort of little nobility, who feel themselves interested to defend the property and to support the authority of their own little sovereign in order that he may be able to defend their property and to support their authority. Civil government, so far as it is instituted for the security of property, is in reality instituted for the defence of the rich against the poor, or of those who have some property against those who have none at all.The Wealth of Nations, Book 5, Chapter 1, Part 2
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Adam Smith
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In British imperial debates
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In British imperial debates
Smith opposed empire. He challenged ideas that colonies were key to British prosperity and power. He rejected that other cultures, such as China and India, were culturally and developmentally inferior to Europe. While he favoured "commercial society", he did not support radical social change and the imposition of commercial society on other societies. He proposed that colonies be given independence or that full political rights be extended to colonial subjects.
Smith's chapter on colonies, in turn, would help shape British imperial debates from the mid-19th century onward. The Wealth of Nations would become an ambiguous text regarding the imperial question. In his chapter on colonies, Smith pondered how to solve the crisis developing across the Atlantic among the empire's 13 American colonies. He offered two different proposals for easing tensions. The first proposal called for giving the colonies their independence, and by thus parting on a friendly basis, Britain would be able to develop and maintain a free-trade relationship with them, and possibly even an informal military alliance. Smith's second proposal called for a theoretical imperial federation that would bring the colonies and the metropole closer together through an imperial parliamentary system and imperial free trade.E.A. Benians, 'Adam Smith's project of an empire', Cambridge Historical Journal 1 (1925): 249–283
Smith's most prominent disciple in 19th-century Britain, peace advocate Richard Cobden, preferred the first proposal. Cobden would lead the Anti-Corn Law League in overturning the Corn Laws in 1846, shifting Britain to a policy of free trade and empire "on the cheap" for decades to come. This hands-off approach toward the British Empire would become known as Cobdenism or the Manchester School.Anthony Howe, Free trade and liberal England, 1846–1946 (Oxford, 1997) By the turn of the century, however, advocates of Smith's second proposal such as Joseph Shield Nicholson would become ever more vocal in opposing Cobdenism, calling instead for imperial federation.J. Shield Nicholson, A project of empire: a critical study of the economics of imperialism, with special reference to the ideas of Adam Smith (London, 1909) As Marc-William Palen notes: "On the one hand, Adam Smith's late nineteenth and early twentieth-century Cobdenite adherents used his theories to argue for gradual imperial devolution and empire 'on the cheap'. On the other, various proponents of imperial federation throughout the British World sought to use Smith's theories to overturn the predominant Cobdenite hands-off imperial approach and instead, with a firm grip, bring the empire closer than ever before."Marc-William Palen, "Adam Smith as Advocate of Empire, c. 1870–1932," Historical Journal 57: 1 (March 2014): 179–198. Smith's ideas thus played an important part in subsequent debates over the British Empire.
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Adam Smith
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Portraits, monuments, and banknotes
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Portraits, monuments, and banknotes
thumb|upright=0.8|A statue of Smith in Edinburgh's High Street, erected through private donations organised by the Adam Smith Institute
Smith has been commemorated in the UK on banknotes printed by two different banks; his portrait has appeared since 1981 on the £50 notes issued by the Clydesdale Bank in Scotland, and in March 2007 Smith's image also appeared on the new series of £20 notes issued by the Bank of England, making him the first Scotsman to feature on an English banknote.
thumb|left|upright=0.8|Statue of Smith built in 1867–1870 at the old headquarters of the University of London, 6 Burlington Gardens
Between 1867 and 1870, a statue of Smith was built into the outside wall of 6 Burlington Gardens, then the headquarters of the University of London (now home to the Royal Academy of Arts). A large-scale memorial of Smith by Alexander Stoddart was unveiled on 4 July 2008 in Edinburgh. It is a -tall bronze sculpture and it stands above the Royal Mile outside St Giles' Cathedral in Parliament Square, near the Mercat cross. Sculptor Jim Sanborn has created multiple pieces which feature Smith's work. At Central Connecticut State University is Circulating Capital, a tall cylinder which features an extract from The Wealth of Nations on the lower half, and on the upper half, some of the same text, but represented in binary code. At the University of North Carolina at Charlotte, outside the Belk College of Business Administration, is Adam Smith's Spinning Top. Another Smith sculpture is at Cleveland State University. Smith also appears as the narrator in the 2013 play The Low Road, centred on a proponent on laissez-faire economics in the late 18th century, but dealing obliquely with the 2008 financial crisis and the Great Recession; he was portrayed by Bill Paterson in the premiere production at the Royal Court Theatre in London.
A bust of Smith is in the Hall of Heroes of the National Wallace Monument in Stirling. Five paving stones, displaying quotations from Smith's works, were unveiled in December 2023 in the High Street, Glasgow. The stones were commissioned by the University of Glasgow to mark the 300th anniversary of Smith's birth.
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Adam Smith
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Panmure House
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Panmure House
Adam Smith resided at Panmure House from 1778 to 1790. In 2008, the house was purchased by the Edinburgh Business School at Heriot-Watt University and funds were raised for its restoration. In 2018 it was formally opened as a study centre in Smith's honour.
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Adam Smith
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As a symbol of free-market economics
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As a symbol of free-market economics
Smith has been celebrated by advocates of free-market policies as the founder of free-market economics, a view reflected in the naming of bodies such as the Adam Smith Institute in London, multiple entities known as the "Adam Smith Society", including an historical Italian organisation, and the U.S.-based Adam Smith Society, and the Australian Adam Smith Club, and in terms such as the Adam Smith necktie.
Former US Federal Reserve Chairman Alan Greenspan argues that, while Smith did not coin the term laissez-faire, "it was left to Adam Smith to identify the more-general set of principles that brought conceptual clarity to the seeming chaos of market transactions." Greenspan continues that The Wealth of Nations was "one of the great achievements in human intellectual history." P.J. O'Rourke describes Smith as the "founder of free market economics."
Nobel laureate economist Milton Friedman believed in 1976, 200 years after the publishing of The Wealth of Nations, that the work of Adam Smith was, "...far more immediately relevant today than he was at the Centennial of The Wealth of Nations in 1876."
Other writers have argued that Smith's support for laissez-faire (which in French means leave alone) has been overstated. Herbert Stein wrote that the people who "wear an Adam Smith necktie" do it to "make a statement of their devotion to the idea of free markets and limited government", and that this misrepresents Smith's ideas. Stein writes that Smith "was not pure or doctrinaire about this idea. He viewed government intervention in the market with great skepticism...yet he was prepared to accept or propose qualifications to that policy in the specific cases where he judged that their net effect would be beneficial and would not undermine the basically free character of the system. He did not wear the Adam Smith necktie." In Stein's reading, The Wealth of Nations could justify the Food and Drug Administration, the Consumer Product Safety Commission, mandatory employer health benefits, environmentalism, and "discriminatory taxation to deter improper or luxurious behavior".
Similarly, Vivienne Brown stated in The Economic Journal that in the 20th-century United States, Reaganomics supporters, The Wall Street Journal, and other similar sources have spread among the general public a partial and misleading vision of Smith, portraying him as an "extreme dogmatic defender of laissez-faire capitalism and supply-side economics". In fact, The Wealth of Nations includes the following statement on the payment of taxes:
The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.
Some commentators have argued that Smith's works show support for a progressive, not flat, income tax and that he specifically named taxes that he thought should be required by the state, among them luxury-goods taxes and tax on rent. Yet Smith argued for the "impossibility of taxing the people, in proportion to their economic revenue, by any capitation".The Wealth of Nations, V.ii.k.1 Smith argued that taxes should principally go toward protecting "justice" and "certain publick institutions" that were necessary for the benefit of all of society, which could not be adequately provided by private enterprise.The Wealth of Nations, IV.ix.51
Additionally, Smith outlined the proper expenses of the government in The Wealth of Nations, Book V, Ch. I. Included in his requirements of a government is to enforce contracts and provide justice system, grant patents and copy rights, provide public goods such as infrastructure, provide national defence, and regulate banking. The role of the government was to provide goods "of such a nature that the profit could never repay the expense to any individual" such as roads, bridges, canals, and harbours. He also encouraged invention and new ideas through his patent enforcement and support of infant industry monopolies. He supported partial public subsidies for elementary education, and he believed that competition among religious institutions would provide general benefit to the society. In such cases, Smith argued for local rather than centralised control: "Even those publick works which are of such a nature that they cannot afford any revenue for maintaining themselves ... are always better maintained by a local or provincial revenue, under the management of a local and provincial administration, than by the general revenue of the state" (Wealth of Nations, V.i.d.18). Finally, he outlined how the government should support the dignity of the monarch or chief magistrate, such that they are equal or above the public in fashion. He further stated that monarchs should be provided for in a greater fashion than magistrates of a republic because "we naturally expect more splendor in the court of a king than in the mansion-house of a doge". In addition, he allowed that in some specific circumstances, retaliatory tariffs may be beneficial:
The recovery of a great foreign market will generally more than compensate the transitory inconvenience of paying dearer during a short time for some sorts of goods.Smith, A., 1976, The Glasgow edition, vol. 2a, p. 468.
However, he added that in general, a retaliatory tariff "seems a bad method of compensating the injury done to certain classes of our people, to do another injury ourselves, not only to those classes, but to almost all the other classes of them".The Wealth of Nations, IV.ii.39
Economic historians such as Jacob Viner regard Smith as a strong advocate of free markets and limited government (what Smith called "natural liberty"), but not as a dogmatic supporter of laissez-faire.
Economist Daniel Klein believes using the term "free-market economics" or "free-market economist" to identify the ideas of Smith is too general and slightly misleading. Klein offers six characteristics central to the identity of Smith's economic thought and argues that a new name is needed to give a more accurate depiction of the "Smithian" identity. Economist David Ricardo set straight some of the misunderstandings about Smith's thoughts on free market. Many continue to fall victim to the thinking that Smith was a free-market economist without exception, though he was not. Ricardo pointed out that Smith was in support of helping infant industries. Smith believed that the government should subsidise newly formed industry, but he did fear that when the infant industry grew into adulthood, it would be unwilling to surrender the government help.Buchholz, Todd (December 1990). pp. 38–39. Smith also supported tariffs on imported goods to counteract an internal tax on the same good. Smith also fell to pressure in supporting some tariffs in support for national defence.
Some have also claimed, Emma Rothschild among them, that Smith would have supported a minimum wage,Martin, Christopher. "Adam Smith and Liberal Economics: Reading the Minimum Wage Debate of 1795–96," Econ Journal Watch 8(2): 110–125, May 2011 although no direct textual evidence supports the claim. Indeed, Smith wrote:
The price of labour, it must be observed, cannot be ascertained very accurately anywhere, different prices being often paid at the same place and for the same sort of labour, not only according to the different abilities of the workmen, but according to the easiness or hardness of the masters. Where wages are not regulated by law, all that we can pretend to determine is what are the most usual; and experience seems to show that law can never regulate them properly, though it has often pretended to do so. (The Wealth of Nations, Book 1, Chapter 8)
However, Smith also noted, to the contrary, the existence of an imbalanced, inequality of bargaining power:A Smith, Wealth of Nations (1776) Book I, ch 8
A landlord, a farmer, a master manufacturer, a merchant, though they did not employ a single workman, could generally live a year or two upon the stocks which they have already acquired. Many workmen could not subsist a week, few could subsist a month, and scarce any a year without employment. In the long run, the workman may be as necessary to his master as his master is to him, but the necessity is not so immediate.
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Adam Smith
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See also
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See also
Critique of political economy
Organizational capital
List of abolitionist forerunners
List of Fellows of the Royal Society of Arts
People on Scottish banknotes
Adam Smith's America
Anne Robert Jacques Turgot
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Adam Smith
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References
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References
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Adam Smith
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Informational notes
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Informational notes
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Adam Smith
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Citations
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Citations
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Adam Smith
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Bibliography
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Bibliography
Helbroner, Robert L. The Essential Adam Smith.
Otteson, James R. (2002). Adam Smith's Marketplace of Life. Cambridge: Cambridge University Press.
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Adam Smith
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Further reading
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Further reading
Hardwick, D. and Marsh, L. (2014). Propriety and Prosperity: New Studies on the Philosophy of Adam Smith. Palgrave Macmillan
Mullen, Roger, Smith, Craig, and Mochrie, Robbie (eds.) (2023), Adam Smith: The Kirkcaldy Papers, Adam Smith Global Foundation, Kirkcaldy,
Phillipson, Nicholas (2010). Adam Smith: An Enlightened Life, Yale University Press, , 352 pages; scholarly biography
Pichet, Éric (2004). Adam Smith, je connais !, French biography.
Vianello, F. (1999). "Social accounting in Adam Smith", in: Mongiovi, G. and Petri F. (eds.), Value, Distribution and capital. Essays in honour of Pierangelo Garegnani, London: Routledge, .
Wolloch, N. (2015). "Symposium on Jack Russell Weinstein's Adam Smith's Pluralism: Rationality, Education and the Moral Sentiments". Cosmos + Taxis
"Adam Smith and Empire: A New Talking Empire Podcast," Imperial & Global Forum, 12 March 2014.
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Adam Smith
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External links
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External links
References to Adam Smith in historic European newspapers
at the Adam Smith Institute
Category:1723 births
Category:1790 deaths
Category:18th-century Scottish writers
Category:18th-century Scottish male writers
Category:Academics of the University of Glasgow
Category:Age of Enlightenment
Category:Alumni of Balliol College, Oxford
Category:Alumni of the University of Glasgow
Category:British classical liberal economists
Category:British male non-fiction writers
Category:Burials at the Canongate Kirkyard
Category:Capitalism
Category:Classical economists
Category:Critics of work and the work ethic
Category:Enlightenment philosophers
Category:Fellows of the Royal Society
Category:Fellows of the Royal Society of Edinburgh
Category:Founder fellows of the Royal Society of Edinburgh
Category:Members of the Philosophical Society of Edinburgh
Category:Political realists
Category:People of the Scottish Enlightenment
Category:People from Kirkcaldy
Category:Philosophers of economics
Category:Philosophers of logic
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Category:Scottish business theorists
Category:Scottish economists
Category:Scottish libertarians
Category:Scottish logicians
Category:18th-century Scottish philosophers
Category:Scottish scholars and academics
Category:Social philosophers
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Adam Smith
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Table of Content
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Short description, Biography, Early life, Formal education, Teaching career, Tutoring, travels, European intellectuals, Later years, Death, Personality and beliefs, Character, Religious views, Published works, ''The Theory of Moral Sentiments'', ''The Wealth of Nations'', Other works, Legacy, In economics and moral philosophy, In British imperial debates, Portraits, monuments, and banknotes, Panmure House, As a symbol of free-market economics, See also, References, Informational notes, Citations, Bibliography, Further reading, External links
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Antoine Lavoisier
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short description
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Antoine-Laurent de Lavoisier ( ; ; 26 August 17438 May 1794), Lavoisier, le parcours d'un scientifique révolutionnaire CNRS (Centre National de la Recherche Scientifique) also Antoine Lavoisier after the French Revolution, was a French nobleman and chemist who was central to the 18th-century chemical revolution and who had a large influence on both the history of chemistry and the history of biology.
It is generally accepted that Lavoisier's great accomplishments in chemistry stem largely from his changing the science from a qualitative to a quantitative one. Lavoisier is most noted for his discovery of the role oxygen plays in combustion. He named oxygen (1778), recognizing it as an element, and also recognized hydrogen as an element (1783), opposing the phlogiston theory. Lavoisier helped construct the metric system, wrote the first extensive list of elements, and helped to reform chemical nomenclature. He predicted the existence of silicon (1787)In his table of the elements, Lavoisier listed five "salifiable earths" (i.e., ores that could be made to react with acids to produce salts (salis = salt, in Latin)): chaux (calcium oxide), magnésie (magnesia, magnesium oxide), baryte (barium sulfate), alumine (alumina, aluminium oxide), and silice (silica, silicon dioxide). About these "elements", Lavoisier speculates: "We are probably only acquainted as yet with a part of the metallic substances existing in nature, as all those which have a stronger affinity to oxygen than carbon possesses, are incapable, hitherto, of being reduced to a metallic state, and consequently, being only presented to our observation under the form of oxyds, are confounded with earths. It is extremely probable that barytes, which we have just now arranged with earths, is in this situation; for in many experiments it exhibits properties nearly approaching to those of metallic bodies. It is even possible that all the substances we call earths may be only metallic oxyds, irreducible by any hitherto known process." – from p. 218 of: Lavoisier with Robert Kerr, trans., Elements of Chemistry, ..., 4th ed. (Edinburgh, Scotland: William Creech, 1799). (The original passage appears in: Lavoisier, Traité Élémentaire de Chimie, ... (Paris, France: Cuchet, 1789), vol. 1, p. 174.) and discovered that, although matter may change its form or shape, its mass always remains the same. His wife and laboratory assistant, Marie-Anne Paulze Lavoisier, became a renowned chemist in her own right.
Lavoisier was a powerful member of a number of aristocratic councils, and an administrator of the Ferme générale. The Ferme générale was one of the most hated components of the Ancien Régime because of the profits it took at the expense of the state, the secrecy of the terms of its contracts, and the violence of its armed agents. All of these political and economic activities enabled him to fund his scientific research. At the height of the French Revolution, he was charged with tax fraud and selling adulterated tobacco, and was guillotined despite appeals to spare his life in recognition of his contributions to science. A year and a half later, he was exonerated by the French government.
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Antoine Lavoisier
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Biography
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Biography
thumb|The Collège des Quatre-Nations in Paris
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Antoine Lavoisier
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Early life and education
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Early life and education
Antoine-Laurent Lavoisier was born to a wealthy family of the nobility in Paris on 26 August 1743. The son of an attorney at the Parlement of Paris, he inherited a large fortune at the age of five upon the death of his mother. Lavoisier began his schooling at the Collège des Quatre-Nations, University of Paris (also known as the Collège Mazarin) in Paris in 1754 at the age of 11. In his last two years (1760–1761) at the school, his scientific interests were aroused, and he studied chemistry, botany, astronomy, and mathematics. In the philosophy class he came under the tutelage of Abbé Nicolas Louis de Lacaille, a distinguished mathematician and observational astronomer who imbued the young Lavoisier with an interest in meteorological observation, an enthusiasm which never left him. Lavoisier entered the school of law, where he received a bachelor's degree in 1763 and a licentiate in 1764. Lavoisier received a law degree and was admitted to the bar, but never practiced as a lawyer. However, he continued his scientific education in his spare time.
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Antoine Lavoisier
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Early scientific work
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Early scientific work
Lavoisier's education was filled with the ideals of the French Enlightenment of the time, and he was fascinated by Pierre Macquer's dictionary of chemistry. He attended lectures in the natural sciences. Lavoisier's devotion and passion for chemistry were largely influenced by Étienne Condillac, a prominent French scholar of the 18th century. His first chemical publication appeared in 1764. From 1763 to 1767, he studied geology under Jean-Étienne Guettard. In collaboration with Guettard, Lavoisier worked on a geological survey of Alsace-Lorraine in June 1767. In 1764 he read his first paper to the French Academy of Sciences, France's most elite scientific society, on the chemical and physical properties of gypsum (hydrated calcium sulfate), and in 1766 he was awarded a gold medal by the King for an essay on the problems of urban street lighting. In 1768 Lavoisier received a provisional appointment to the Academy of Sciences. In 1769, he worked on the first geological map of France.
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Antoine Lavoisier
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Lavoisier as a social reformer
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Lavoisier as a social reformer
thumb|Lavoisier conducting an experiment on respiration in the 1770s
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Antoine Lavoisier
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Research benefitting the public good
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Research benefitting the public good
While Lavoisier is commonly known for his contributions to the sciences, he also dedicated a significant portion of his fortune and work toward benefitting the public. Lavoisier was a humanitarian—he cared deeply about the people in his country and often concerned himself with improving the livelihood of the population by agriculture, industry, and the sciences. The first instance of this occurred in 1765, when he submitted an essay on improving urban street lighting to the French Academy of Sciences.
Three years later in 1768, he focused on a new project to design an aqueduct. The goal was to bring water from the river Yvette into Paris so that the citizens could have clean drinking water. But, since the construction never commenced, he instead turned his focus to purifying the water from the Seine. This was the project that interested Lavoisier in the chemistry of water and public sanitation duties.
Additionally, he was interested in air quality and spent some time studying the health risks associated with gunpowder's effect on the air. In 1772, he performed a study on how to reconstruct the Hôtel-Dieu hospital, after it had been damaged by fire, in a way that would allow proper ventilation and clean air throughout.
At the time, the prisons in Paris were known to be largely unlivable and the prisoners' treatment inhumane. Lavoisier took part in investigations in 1780 (and again in 1791) on the hygiene in prisons and had made suggestions to improve living conditions, suggestions which were largely ignored.
Once a part of the academy, Lavoisier also held his own competitions to push the direction of research towards bettering the public and his own work.
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Antoine Lavoisier
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Sponsorship of the sciences
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Sponsorship of the sciences
Lavoisier had a vision of public education having roots in "scientific sociability" and philanthropy.
Lavoisier gained a vast majority of his income through buying stock in the General Farm, which allowed him to work on science full-time, live comfortably, and allowed him to contribute financially to better the community. (It would also contribute to his demise during the Reign of Terror many years later.)
It was very difficult to secure public funding for the sciences at the time, and additionally not very financially profitable for the average scientist, so Lavoisier used his wealth to open a very expensive and sophisticated laboratory in France so that aspiring scientists could study without the barriers of securing funding for their research.
He also pushed for public education in the sciences. He founded two organizations, and Musée des Arts et Métiers, which were created to serve as educational tools for the public. Funded by the wealthy and noble, the Lycée regularly taught courses to the public beginning in 1793.
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Antoine Lavoisier
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Ferme générale and marriage
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Ferme générale and marriage
thumb|Portrait of Lavoisier explaining to his wife the result of his experiments on air by Ernest Board
At the age of 26, around the time he was elected to the Academy of Sciences, Lavoisier bought a share in the Ferme générale, a tax farming financial company which advanced the estimated tax revenue to the royal government in return for the right to collect the taxes. On behalf of the Ferme générale Lavoisier commissioned the building of a wall around Paris so that customs duties could be collected from those transporting goods into and out of the city.Citizens, Simon Schama. Penguin 1989 p. 236 His participation in the collection of its taxes did not help his reputation when the Reign of Terror began in France, as taxes and poor government reform were the primary motivators during the French Revolution.
Lavoisier consolidated his social and economic position when, in 1771 at age 28, he married Marie-Anne Pierrette Paulze, the 13-year-old daughter of a senior member of the Ferme générale. She was to play an important part in Lavoisier's scientific career—notably, she translated English documents for him, including Richard Kirwan's Essay on Phlogiston and Joseph Priestley's research. In addition, she assisted him in the laboratory and created many sketches and carved engravings of the laboratory instruments used by Lavoisier and his colleagues for their scientific works. Madame Lavoisier edited and published Antoine's memoirs (whether any English translations of those memoirs have survived is unknown as of today) and hosted parties at which eminent scientists discussed ideas and problems related to chemistry.
A portrait of Antoine and Marie-Anne Lavoisier was painted by the famed artist Jacques-Louis David. Completed in 1788 on the eve of the Revolution, the painting was denied a customary public display at the Paris Salon for fear that it might inflame anti-aristocratic passions.
For three years following his entry into the Ferme générale, Lavoisier's scientific activity diminished somewhat, for much of his time was taken up with official Ferme générale business. He did, however, present one important memoir to the Academy of Sciences during this period, on the supposed conversion of water into earth by evaporation. By a very precise quantitative experiment, Lavoisier showed that the "earthy" sediment produced after long-continued reflux heating of water in a glass vessel was not due to a conversion of the water into earth but rather to the gradual disintegration of the inside of the glass vessel produced by the boiling water. He also attempted to introduce reforms in the French monetary and taxation system to help the peasants.
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Antoine Lavoisier
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Adulteration of tobacco
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Adulteration of tobacco
The Farmers General held a monopoly of the production, import and sale of tobacco in France, and the taxes they levied on tobacco brought revenues of 30 million livres a year. This revenue began to fall because of a growing black market in tobacco that was smuggled and adulterated, most commonly with ash and water. Lavoisier devised a method of checking whether ash had been mixed in with tobacco: "When a spirit of vitriol, aqua fortis or some other acid solution is poured on ash, there is an immediate very intense effervescent reaction, accompanied by an easily detected noise."
Lavoisier also noticed that the addition of a small amount of ash improved the flavour of tobacco. Of one vendor selling adulterated goods, he wrote "His tobacco enjoys a very good reputation in the province... the very small proportion of ash that is added gives it a particularly pungent flavour that consumers look for. Perhaps the Farm could gain some advantage by adding a bit of this liquid mixture when the tobacco is fabricated." Lavoisier also found that while adding a lot of water to bulk the tobacco up would cause it to ferment and smell bad, the addition of a very small amount improved the product.
Thereafter the factories of the Farmers General added, as he recommended, a consistent 6.3% of water by volume to the tobacco they processed. To allow for this addition, the Farmers General delivered to retailers seventeen ounces of tobacco while only charging for sixteen. To ensure that only these authorised amounts were added, and to exclude the black market, Lavoisier saw to it that a watertight system of checks, accounts, supervision and testing made it very difficult for retailers to source contraband tobacco or to improve their profits by bulking it up.
He was energetic and rigorous in implementing this, and the systems he introduced were deeply unpopular with the tobacco retailers across the country. This unpopularity was to have consequences for him during the French Revolution.
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Antoine Lavoisier
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Royal Commission on Agriculture
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Royal Commission on Agriculture
Lavoisier urged the establishment of a Royal Commission on Agriculture. He then served as its Secretary and spent considerable sums of his own money in order to improve the agricultural yields in the Sologne, an area where farmland was of poor quality. The humidity of the region often led to a blight of the rye harvest, causing outbreaks of ergotism among the population. In 1788 Lavoisier presented a report to the Commission detailing ten years of efforts on his experimental farm to introduce new crops and types of livestock. His conclusion was that despite the possibilities of agricultural reforms, the tax system left tenant farmers with so little that it was unrealistic to expect them to change their traditional practices.Citizens, Simon Schama, Penguin 1989 p. 313
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Antoine Lavoisier
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Gunpowder Commission
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Gunpowder Commission
thumb|Éleuthère Irénée du Pont (right) and mentor Antoine Lavoisier
Lavoisier's researches on combustion were carried out in the midst of a very busy schedule of public and private duties, especially in connection with the Ferme Générale. There were also innumerable reports for and committees of the Academy of Sciences to investigate specific problems on order of the royal government. Lavoisier, whose organizing skills were outstanding, frequently landed the task of writing up such official reports. In 1775 he was made one of four commissioners of gunpowder appointed to replace a private company, similar to the Ferme Générale, which had proved unsatisfactory in supplying France with its munitions requirements. As a result of his efforts, both the quantity and quality of French gunpowder greatly improved, and it became a source of revenue for the government. His appointment to the Gunpowder Commission brought one great benefit to Lavoisier's scientific career as well. As a commissioner, he enjoyed both a house and a laboratory in the Royal Arsenal. Here he lived and worked between 1775 and 1792.
Lavoisier was a formative influence in the formation of the Du Pont gunpowder business because he trained Éleuthère Irénée du Pont, its founder, on gunpowder-making in France; the latter said that the Du Pont gunpowder mills "would never have been started but for his kindness to me."
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Antoine Lavoisier
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During the Revolution
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During the Revolution
In June 1791, Lavoisier made a loan of 71,000 livres to Pierre Samuel du Pont de Nemours to buy a printing works so that du Pont could publish a newspaper, La Correspondance Patriotique. The plan was for this to include both reports of debates in the National Constituent Assembly as well as papers from the Academy of Sciences.Chronicle of the French Revolution, Jacques Legrand, Longman 1989, p. 216 The revolution quickly disrupted the elder du Pont's first newspaper, but his son E.I. du Pont soon launched Le Republicain and published Lavoisier's latest chemistry texts.
Lavoisier also chaired the commission set up to establish a uniform system of weights and measuresCompanion to the French Revolution, John Paxton, Facts on File Publications 1988, p. 120A Cultural History of the French Revolution, Emmet Kennedy, Yale University Press 1989, p. 193 which in March 1791 recommended the adoption of the metric system.Chronicle of the French Revolution, Jacques Legrand, Longman 1989, p. 204 The new system of weights and measures was adopted by the Convention on 1 August 1793.Chronicle of the French Revolution, Jacques Legrand, Longman 1989, p. 356 Lavoisier was one of the 27 Farmers General who, by order of the convention, were all to be detained. Although temporarily going into hiding, on 30 November 1793 he handed himself into the Port Royal convent for questioning. He claimed he had not operated on this commission for many years, having instead devoted himself to science.Chronicle of the French Revolution, Jacques Legrand, Longman 1989
Lavoisier himself was removed from the commission on weights and measures on 23 December 1793, together with mathematician Pierre-Simon Laplace and several other members, for political reasons.
One of his last major works was a proposal to the National Convention for the reform of French education. He also intervened on behalf of a number of foreign-born scientists including mathematician Joseph Louis Lagrange, helping to exempt them from a mandate stripping all foreigners of possessions and freedom.
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Antoine Lavoisier
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Final days and execution
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Final days and execution
thumb|Lavoisier, by Jacques-Léonard Maillet, , among culture heroes in the Louvre's Cour Napoléon
As the French Revolution gained momentum, attacks mounted on the deeply unpopular Ferme générale, and it was eventually abolished in March 1791.Chronicle of the French Revolution, Longman 1989 p. 202 In 1792 Lavoisier was forced to resign from his post on the Gunpowder Commission and to move from his house and laboratory at the Royal Arsenal. On 8 August 1793, all the learned societies, including the Academy of Sciences, were suppressed at the request of Abbé Grégoire.
On 24 November 1793, the arrest of all the former tax farmers was ordered. Lavoisier and the other Farmers General faced nine accusations of defrauding the state of money owed to it, and of adding water to tobacco before selling it. Lavoisier drafted their defense, refuting the financial accusations, reminding the court of how they had maintained a consistently high quality of tobacco. The court, however, was inclined to believe that by condemning them and seizing the goods of the Farmers General, it would recover huge sums for the state. Lavoisier was convicted and guillotined on 8 May 1794 in Paris, at the age of 50, along with his 27 co-defendants.
According to popular legend, the appeal to spare his life, in order that he could continue his experiments, was cut short by the judge, Coffinhal: "La République n'a pas besoin de savants ni de chimistes; le cours de la justice ne peut être suspendu." ("The Republic needs neither scholars nor chemists; the course of justice cannot be delayed.")Commenting on this quotation, Denis Duveen, an English expert on Lavoiser and a collector of his works, wrote that "it is pretty certain that it was never uttered". For Duveen's evidence, see the following: . The judge Coffinhal himself would be executed less than three months later, in the wake of the Thermidorian reaction.
Lavoisier's importance to science was expressed by Lagrange who lamented the beheading by saying: "Il ne leur a fallu qu'un moment pour faire tomber cette tête, et cent années peut-être ne suffiront pas pour en reproduire une semblable." ("It took them only an instant to cut off this head, and a hundred years might not suffice to reproduce its like.")
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Antoine Lavoisier
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Exoneration
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Exoneration
A year and a half after his execution, Lavoisier was completely exonerated by the French government. During the White Terror, his belongings were delivered to his widow. A brief note was included, reading "To the widow of Lavoisier, who was falsely convicted".(In French) M.-A. Paulze, épouse et collaboratrice de Lavoisier, Vesalius, VI, 2, 105–113, 2000, p. 110. (PDF)
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Antoine Lavoisier
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Blinking experiment
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Blinking experiment
An apocryphal story exists regarding Lavoisier's execution in which the scientist blinked his eyes to demonstrate that the head retained some consciousness after being severed. Some variants of the story include Joseph-Louis Lagrange as being the scientist to observe and record Lavoisier's blinking. This story was not recorded in contemporary accounts of Lavoisier's death, and the execution site was too removed from the public for Lagrange to have viewed Lavoisier's alleged experiment. The story likely originated in a 1990s Discovery Channel documentary about guillotines and then subsequently spread online, becoming what one source describes as an urban legend.
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Antoine Lavoisier
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Contributions to chemistry
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Contributions to chemistry
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Antoine Lavoisier
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Oxygen theory of combustion
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Oxygen theory of combustion
thumb|Antoine Lavoisier's phlogiston experiment. Engraving by Mme Lavoisier in the 1780s taken from Traité Élémentaire de Chimie (Elementary treatise on chemistry)
Contrary to prevailing thought at the time, Lavoisier theorized that common air, or one of its components, combines with substances when they are burned. He demonstrated this through experiment.
During late 1772 Lavoisier turned his attention to the phenomenon of combustion, the topic on which he was to make his most significant contribution to science. He reported the results of his first experiments on combustion in a note to the Academy on 20 October, in which he reported that when phosphorus burned, it combined with a large quantity of air to produce acid spirit of phosphorus, and that the phosphorus increased in weight on burning. In a second sealed note deposited with the academy a few weeks later (1 November) Lavoisier extended his observations and conclusions to the burning of sulfur and went on to add that "what is observed in the combustion of sulfur and phosphorus may well take place in the case of all substances that gain in weight by combustion and calcination: and I am persuaded that the increase in weight of metallic calces is due to the same cause."
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Antoine Lavoisier
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Joseph Black's "fixed air"
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Joseph Black's "fixed air"
During 1773 Lavoisier determined to review thoroughly the literature on air, particularly "fixed air," and to repeat many of the experiments of other workers in the field. He published an account of this review in 1774 in a book entitled Opuscules physiques et chimiques (Physical and Chemical Essays). In the course of this review, he made his first full study of the work of Joseph Black, the Scottish chemist who had carried out a series of classic quantitative experiments on the mild and caustic alkalies. Black had shown that the difference between a mild alkali, for example, chalk (CaCO3), and the caustic form, for example, quicklime (CaO), lay in the fact that the former contained "fixed air," not common air fixed in the chalk, but a distinct chemical species, now understood to be carbon dioxide (CO2), which was a constituent of the atmosphere. Lavoisier recognized that Black's fixed air was identical with the air evolved when metal calces were reduced with charcoal and even suggested that the air which combined with metals on calcination and increased the weight might be Black's fixed air, that is, CO2.
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