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Born in Hull, Pirie is the son of Douglas Pirie and Eva Madsen. As a child, he attended the Humberstone Foundation School in Old Clee, Lincolnshire. He graduated with an MA (undergraduate) in History from the University of Edinburgh (1970), with a PhD in Philosophy from the University of St Andrews (1974), and with an MPhil in Land Economy from Pembroke College, Cambridge (1997) Before co-founding the Adam Smith Institute, Pirie worked for the United States House of Representatives. He was a Distinguished Visiting Professor of Logic and Philosophy at the private Hillsdale College, Hillsdale, Michigan, USA. Pirie was one of three Britons living in the United States who founded the Adam Smith Institute.