Context
It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy.
What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage.
Explanation
Adam Smith is saying that the same common sense that guides a household should guide a nation. Families stay healthy by living within their means, planning for the future, and avoiding waste. That wisdom does not disappear when decisions get bigger. In fact, the larger the scale, the more vital prudence becomes, because the costs of mistakes grow with it.
When leaders handle public money as carefully as a parent handles a family budget—counting real costs, setting priorities, and sometimes saying no—people enjoy more stability and opportunity. Prosperity is built the same way in countries as in homes: through discipline, honesty, and respect for limits. Good government is simply good household sense, applied to the whole community.
