This chapter discusses some of Adam Smith’s more important economic and political categories. It argue that it is misleading to understand Smith as a methodologic individualist. In particular, it argues that “society” is a crucial category in Smith’s political philosophy. But unlike the Stoicizing interpretation of Smith, this chapter argues that for Smith a society is not by definition harmonious. In particular, there is inherent class conflict between wage-earning and profit-seeking classes. Smith also diagnoses other sources of faction and pays particular attention to social orders. In addition, this chapter introduces Smith’s the nature of status quo bias when contemplating political change.