The commercial state concept (and its important variant, commercial society) is sometimes associated with Adam Ferguson's concept of civil society and refers to a government or political state devoted primarily to the promotion and advancement of commercial interests. Ferguson, Adam Smith and other representatives of the Scottish Enlightenment (and who referred to themselves as the literati) were more likely to use the term commercial society. The underlying idea of the commercial state can also be linked to the American School of Economics (and in particular to the legacy of the political and economic approach of Alexander Hamilton). In its modern manifestation, national, state and local governments which pursue business and commercial development and other forms of economic and industrial development through tax policies and forms of positive incentives and inducements may properly be termed commercial states. Practical commercial state activities include governmental economic development efforts including encouraging plant relocations, tax rebates, zoning easements and assorted other incentives and concessions.
Several lines of thought and action (e.g. Mercantilism) run from ancient Greek and Roman philosophy through Ferguson and Adam Smith. They can be traced through the Federalist party of Alexander Hamilton and more recently Austrian economists such as Ludwig von Mises, Frederick Hayek. An essentially commercial view of the state has continued down to modern theorists including Milton Friedman and Murray Rothbard, who argue not only for a limited role for government, but also that that residual role is heavily commercial. The modern U.S. Republican Party and Democratic Party in the U.S. both include significant factions of commercial state adherents, although commercial state rhetoric is usually much more evident in the former. (See, for example, discussions of Reaganomics in Ronald Reagan and the U.S. Republican Party.)
