factual

Theft Punished More Than Breach of Contract

Adam Smith explains that theft and robbery carry greater punishment (and are criminal offenses) than violations of promises or contracts (which are only civil offenses) because robbery takes what we have already acquired while breach of contract merely frustrates our expectation of gain -- an application of the gains/losses asymmetry.

factualpending

Speaker

Vernon Smith

Evidence Quote

theft and robbery carry a greater punishment than a violation of promises... because robbery and theft take from us what we have already acquired. Violation of contract merely frustrates our expectation of gain... theft and robbery are criminal offenses. Violation of contract are only civil offenses.

Source

Vernon Smith on Adam Smith and the Human EnterpriseEconTalk
Created: 6/13/2026, 12:22:45 AM

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