Theory of Moral Sentiments - Virtue and Natural Liberty

In a system of natural liberty the role of the government is clear and limited in its use of coercion.

Smith writes, perceptively:

The wisdom of every state or commonwealth endeavours, as well as it can, to employ the force of the society to restrain those who are subject to its authority, from hurting or disturbing the happiness of one another. The rules which it establishes for this purpose, constitute the civil and criminal law of each particular state or country.

Smith goes on to outline the character and virtue of the "perfectly innocent and just man" a rare individual indeed. This is clearly the rationale for institutional evolution to shape the behavior of those of use who are not this rare individual.

Smith describes this rare individual:



A sacred and religious regard not to hurt or disturb in any respect the happiness of our neighbour, even in those cases where no law can properly protect him, constitutes the character of the perfectly innocent and just man; a character which, when carried to a certain delicacy of attention, is always highly respectable and even venerable for its own sake, and can scarce ever fail to be accompanied with many other virtues, with great feeling for other people, with great humanity and great benevolence. It is a character sufficiently understood, and requires no further explanation.

Section II Of the Character of the Individual, so far as it can affect the Happiness of other People