The Jacobite groundwork of James Steuart’s political economy

In the late 1740s and the 1750s the Jacobite exile James Steuart began to compose the work that became his Principles of Political Oeconomy. This article shows how the political principles of this work were shaped in two contexts neglected by earlier scholars: the networks that shaped Steuart’s formation as a Jacobite, and the debates about absolute monarchy that he encountered in France early during his exile starting in 1746. It demonstrates that Steuart’s vision of an economically active, interventionist state chiefly developed not from German debates about administration, as is often assumed, but from long-running Scottish currents of opposition to British government policy and radical French ideas about how monarchical reform can secure equal rights for all. This article thus uncovers the Jacobite and French origins of Steuart’s variety of interventionism, which troubled Adam Smith, inspired French revolutionaries, and influenced Hegel, Marx, and the broader history of political economy.