Night-watchman state
Also called: Minimal state · Topic: Schools of Economic Thought and Economic Laws · NCERT: Beyond NCERT
Meaning
A night-watchman state is a minimal state. Its only jobs are to protect life, property and contracts through police, courts and defence. Beyond that, it leaves the economy to the market. The term was first a critics' jibe at laissez-faire thinking. Adam Smith gave the state only three duties: defence, justice and public works. Critics mocked this as a state that just keeps watch at night, like a guard.
Example
Under a pure night-watchman state, there would be no public health scheme, no food subsidy and no rural jobs guarantee. India's DPSPs, such as Art. 38 (welfare state) and Art. 41 (work, education and public assistance), point to the very opposite model.
Don't confuse with
- Welfare state: here the state takes main responsibility for people's well-being through social security, health, education and redistribution. The night-watchman state does none of these.
- Laissez-faire: this is the policy idea of minimal interference. The night-watchman state is the kind of state that results from it.
Related concepts
- Mercantilism
- Bullionism
- Physiocracy
- Classical economics
- Laissez-faire
- Division of labour
- Labour theory of value
- Say's law
- Malthusian theory of population
- Malthusian trap