Adam Smith argued in The Wealth of Nations and The Theory of Moral Sentiments that in order to create an effective and productive capitalist system, individuals must pursue interests of both the self and society. Despite this assertion, modern economic theory has become tightly focused on the pursuit of economic self-interests at the expense of other, higher order motives. This paper will argue that the tendency to employ such an egocentric strategy often generates externalities and inequalities that serve to (...) detract from the greater welfare of society. However, by tempering these economic self-interests with non-economically motivated considerations, this paper will suggest that individuals may create tremendous benefits to society, precisely as Smith outlined more than two centuries ago. In defense of this assertion, this paper will review an array of theoretical arguments and empirical findings that suggest that today''s entrepreneurs are not only seeking to satisfy both selfish and ethical motivations, but in so doing they are also contributing substantially to the overall welfare of society through job creation, wealth redistribution, and a lack of discrimination. As such, it appears that spirit and impact of the capitalist system that Smith envisioned is being realized through entrepreneurship. (shrink)

Though Adam Smith believed that the spontaneous forces of the market set prices at the most productive level, he doubted that market forces price wages as fairly as the prices of other commodities. In fact, various observations by Smith suggest that the market tends to undervalue wages almost as naturally as it naturalizes the prices of most commodities under nonmonopolistic conditions. Those observations imply the germ of a capitalist theory of exploitation.

Adam Smith was a philosopher before he ever wrote about economics, yet until now there has never been a philosophical commentary on the Wealth of Nations. Samuel Fleischacker suggests that Smith's vastly influential treatise on economics can be better understood if placed in the light of his epistemology, philosophy of science, and moral theory. He lays out the relevance of these aspects of Smith's thought to specific themes in the Wealth of Nations, arguing, among other things, that Smith regards (...) social science as an extension of common sense rather than as a discipline to be approached mathematically, that he has moral as well as pragmatic reasons for approving of capitalism, and that he has an unusually strong belief in human equality that leads him to anticipate, if not quite endorse, the modern doctrine of distributive justice. Fleischacker also places Smith's views in relation to the work of his contemporaries, especially his teacher Francis Hutcheson and friend David Hume, and draws out consequences of Smith's thought for present-day political and philosophical debates. The Companion is divided into five general sections, which can be read independently of one another. It contains an index that points to commentary on specific passages in Wealth of Nations. Written in an approachable style befitting Smith's own clear yet finely honed rhetoric, it is intended for professional philosophers and political economists as well as those coming to Smith for the first time. (shrink)

The main aim of the present study is to identify which mental footnotes (related to Adam Smith’s Capitalism) have more weight in the current cognitive processing of participants. We used the “Wealth of Nations” as the main source of the concepts from this author. An experimental design (based on a previous qualitative research) was carried out to test the influence of mental footnotes on the citizens’ decision on the validity of the concepts. The findings point out that there (...) are strong, current, mental footnotes related to the Adam Smith’s concept of price. People mostly understand that, for every product, the entrepreneur has to recover their initial investment and to gain a profit. On the other hand, the fact that entrepreneurs have to pay some expenditures and they need to have profits determines the price of products. (shrink)

Examines Adam Smith's main principles in Wealth of Nations as the basis for effective policymaking. Adam Smith proposed several principles that would help mitigate or eliminate some of the problems we face as a nation today. Many assume that our current laissez-faire capitalism applies his principles. But, in contrast to the libertarianism of the United States, Smith's recipe to increase everyone's wealth and happiness was justice, liberty, and equality. This book examines Adam Smith's main principles in (...) Wealth of Nations as the basis for effective policymaking. Adam Smith wanted to increase happiness through this formula for a good life: equality, liberty, and justice. Free market interpretations of Smith, the book argues, grossly misrepresent his thought, emphasizing only liberty and not also equality and justice. This book suggests policies that combine all three in order for happiness to be maximized. (shrink)

This paper places Adam Smith within the long republican tradition, and offers an emancipatory reflection on the possible space of republican freedom within societies that harbour certain degrees of market activity. In doing so, it seeks to offer some criteria on the kind of political-institutional action that can be taken in modern societies in order to constitute markets that respect, and even promote, republican freedom. The paper is divided into four sections. Section 1 shows why Adam Smith's ethical-political (...) analysis, which was very influential in the shaping of classical political economy, can be presented as part of the broad republican tradition. Section 2 reflects on the possibilities for a realisation of republican freedom within markets. What I call 'commercial republicanism' is here analysed as a project for modern societies. Section 3 assesses the difficulties for commercial republicanism to unfold within capitalist societies, the structural features of which prevent individuals and groups from enjoying the kind of undominated social relations the republican tradition has always pleaded for. Finally, section 4 draws some conclusions on the epistemic and political meanings of commercial republicanism as an emancipatory project for contemporary societies. (shrink)

Adam Smith was a philosopher before he ever wrote about economics, yet until now there has never been a philosophical commentary on the Wealth of Nations . Samuel Fleischacker suggests that Smith's vastly influential treatise on economics can be better understood if placed in the light of his epistemology, philosophy of science, and moral theory. He lays out the relevance of these aspects of Smith's thought to specific themes in the Wealth of Nations , arguing, among other things, that (...) Smith regards social science as an extension of common sense rather than as a discipline to be approached mathematically, that he has moral as well as pragmatic reasons for approving of capitalism, and that he has an unusually strong belief in human equality that leads him to anticipate, if not quite endorse, the modern doctrine of distributive justice. Fleischacker also places Smith's views in relation to the work of his contemporaries, especially his teacher Francis Hutcheson and friend David Hume, and draws out consequences of Smith's thought for present-day political and philosophical debates. The Companion is divided into five general sections, which can be read independently of one another. It contains an index that points to commentary on specific passages in Wealth of Nations . Written in an approachable style befitting Smith's own clear yet finely honed rhetoric, it is intended for professional philosophers and political economists as well as those coming to Smith for the first time. (shrink)

Many contemporary readers are just now discovering Adam Smith's The Theory of Moral Sentiments (TMS). It is increasingly being recognised as a foundational text in moral philosophy and in Adam Smith's oeuvre more generally. This is the first companion to guide readers through TMS and uncover what Smith thinks, why he thinks it, why he might be wrong to think it! -/- While Adam Smith is best known for a Wealth of Nations there is a history of (...) seriously misinterpreting this text as an unnuanced celebration of unfettered capitalism. The Theory of Moral Sentiments is a kind of corrective to these naïve readings. As such, any serious consideration of Adam Smith's work should also include TMS. -/- John McHugh's guide provides detailed analysis of TMS while never losing sight of the text in the context of Smith's writings and world view more generally. It offers both an introduction to the importance and insight of TMS while also functioning as a great way in to Adam Smith as a philosopher. (shrink)

For most of the two hundred years or so that have passed since the publication of the Wealth of Nations, Adam Smith's writings on political and economic questions have been viewed within a liberal capitalist perspective of nineteenth- and twentieth- century provenance. This essay in interpretation seeks to provide a more historical reading of certain political themes which recur in Smith's writings by bringing eighteenth-century perspectives to bear on the problem. Contrary to the view that sees Smith's work as (...) marking the point at which 'politics' was being eclipsed by 'economics', it claims that Smith has a 'politics' which goes beyond certain political attitudes connected with the role of the state in economic affairs. It argues that he employs a consistent mode of political analysis which cannot be encompassed within the standard liberal capitalist categories, but can be understood by reference to the language and qualities of contemporary political debate, and of the eighteenth-century science of politics cultivated by Montesquieu and, above all, Hume, particularly as revealed by recent scholarship. A concluding chapter draws the various strands of the interpretation together to form a portrait of what Smith might legitimately be said to have been doing when he wrote on these matters. (shrink)

First, the book does not have an original thesis. The thesisthe author wants to argue is that Smith is different from his current caricature, a legacy of his nineteenth-century image, according to which he would argue that: i) man is a maximizer of utility; ii) man is ordinarily moved by a narrow selfish interest, or at least is indifferent to the interests of others; iii) human beings are social atoms; iv) a perfectly competitive market is morally a free zone (pp. (...) 4-5). The author recognizes that these interpretations "are being questioned by many scholars". contemporary", however, reiterates his conviction that these interpretations are still prevalent, and cites in this regard the abuse of the name of Smith by the Chicago school (p.6). If the author's aim is to challenge a caricature, still common among non-experts but no longer shared by Smith's scholars, one may wonder whether this justifies a new book. Secondly, the author does not demonstrate mastery of the state of the art. She wants to demonstrate the non-existence of Adam Smith Problem, not only without any direct knowledge of German literature but ignoring an important article by Heilbroner from 1981 and a fundamental essay by Dickey from 1986 that explicitly advocate an exhumation of the "Adam Smith problem" in a new form. Thirdly, the author lacks the ability to understand concepts and problems in contextual terms: where she mentions Adam Smith's 'Newtonianism' she does not prove to be familiar with the literature on the subject, citing Lindgren as the only authority and ignoring, among others, Moscovici, Skinner, Hetherington and Freudenthal, but also seems to understand by Newtonianism an equivalent of deterministic and materialistic mechanicism (pp. 48-51). Besides, every time she uses the term utilitarianism he confuses it with the terms hedonism, economicism, selfishness (p. 155). (shrink)

Whether or not capitalism is compatible with ethics is a long standing dispute. We take up an approach to virtue ethics inspired by Adam Smith and consider how market competition influences the virtues most associated with modern commercial society. Up to a point, competition nurtures and supports such virtues as prudence, temperance, civility, industriousness and honesty. But there are also various mechanisms by which competition can have deleterious effects on the institutions and incentives necessary for sustaining even these (...) most commercially friendly of virtues. It is often supposed that if competitive markets are good, more competition must always be better. However, in the long run competition enhancing policies that neglect the nurturing and support of the bourgeois virtues may undermine the continued flourishing of modern commercial society. (shrink)

The conventional interpretation of Adam Smith is that he is a prophet of commercialism. The liberal capitalist reading of Smith is consistent with the view that history culminates in commercial society. The first part of the article develops this optimistic interpretation of Smith's view of history. Smith implies that commercial society is the end of history because (1) it supplies the ends of nature that he identifies; (2) it is inevitable; and (3) it is permanent. The second part of (...) the article shows that Smith has some dark moments in his writings where he seems to reject completely such teleological notions. In this more civic humanist mood he confesses that commercial society does not supply the ends of nature, nor is it inevitable, nor is it permanent. Both views exist in Smith and the commentator is forced to choose between passages in Smith's work in order to support a particular interpretation of the former's view of history. (shrink)

I thought that I knew Adam Smith. Apparently not! "The political economy of the USA today is based on a laissez-faire interpretation of his Wealth of Nations," which, according to John E. Hill, "grossly distorts Smith's ideas." Furthermore, "correctly interpreting" Smith's thought would lead to greater happiness in all capitalistic political economic systems". The general slant of this book is that gross misinterpretations of Smith's theory of market capitalism have been used to justify the destruction of the moral (...) standards on which market capitalism depends. In other words, market capitalism requires a moral infrastructure or foundation, which has been eroded by Smith's recent... (shrink)

In launching modern economics, Adam Smith paved the way for laissez-faire capitalism, Marxism, and contemporary social science. This book scrutinizes Smith's disparagement of politics and religion to illuminate the subtlety of his rhetoric, the depth of his thought, and the ultimate shortcomings of his project. The author analyzes Smith's ideas on government, justice, human psychology, and international relations, stressing Smith's efforts to elevate wealth at the expense of citizenship and to replace normative political philosophy with historical theorizing and (...) empirical modeling that emphasize economic causes. The book also provides the most comprehensive interpretation available of Smith's views on religion, examining the discrepancies between The Wealth of Nations and The Theory of Moral Sentiments. The concluding chapter appraises the demise of communism in light of the Marxian emancipation of economics from politics and religion. (shrink)

The purpose of Donald Winch’s "historiographic revision" is to show that most recent interpretations of Smith have distorted his meaning because they have misread the intention of Smith’s work, treating it either as the first great justification of the nascent liberal capitalist polity, or as such a justification infiltrated by intimations of the Marxian notion of alienation. In Winch’s view, either account of Smith’s project is misleading by virtue of imposing nineteenth-century perspectives and categories upon "what is quintessentially a work (...) of the eighteenth century." The problem, then, is to determine the historically appropriate context or problematic within which the complex and at times paradoxical thought of the Wealth of Nations, the Theory of Moral Sentiments, and the Lectures on Jurisprudence can reasonably be situated. As Winch notes, his study is an application of the contextualist methodological principles of Quentin Skinner and J. G. A. Pocock, and is similar in design to recent works on Locke by John Dunn and on Hume by Duncan Forbes. (shrink)

This paper presents a theoretical elaboration of the ethical framework of classical capitalism as formulated by Adam Smith in reaction to the dominant mercantilism of his day. It is seen that Smith's project was profoundly ethical and designed to emancipate the consumer from a producer and state dominated economy. Over time, however, the various dysfunctions of a capitalist economy — e.g., concentration of wealth, market power — became manifest and the utilitarian ethical basis of the system eroded. Contemporary (...) capitalism, dominated as it is by large corporations, entrenched political interests and persistent social pathologies, bears little resemblance to the system which Smith envisioned would serve the common man. Most critiques of capitalism are launched from a Marxian-based perspective. We find, however, that by illustrating the wide gap between the reality of contemporary capitalism and the model of amoral political economy developed by Smith, the father of capitalism proves to be the most trenchant critic of the current order. (shrink)

In recent decades, Alasdair MacIntyre has developed a style of moral philosophy and an argument for Neo-Aristotelian virtue ethics that has deeply influenced business ethics. Most of the work inspired by MacIntyre has dealt with individual and organisational dimensions of business ethics rather than the market economic environment in which individuals and organisations operate. MacIntyre has been a fierce critic of capitalism and economics. He has read Adam Smith an advocate of selfish individualism, rule-based ethics and the banishment (...) of teleology. This reading is seriously defective, and Smith in fact offers much of what MacIntyre calls for in economics. MacIntyre's ethical framework can be made more powerful and useful to business ethicists by incorporating Smithian insights, especially Smith's account of market virtues and teleological account of markets as extended cooperation directed towards the common good of wealth creation. Aside from issues of the interpretation of MacIntyre and Smith, this analysis opens new pathways for dialogue between business ethicists and economists. (shrink)

Adam Smith is popularly regarded as the ideological forefather of laissez-faire capitalism, while Rousseau is seen as the passionate advocate of the life of virtue in small, harmonious communities and as a sharp critic of the ills of commercial society. But, in fact, Smith had many of the same worries about commercial society that Rousseau did and was strongly influenced by his critique. In this first book-length comparative study of these leading eighteenth-century thinkers, Dennis Rasmussen highlights Smith’s sympathy (...) with Rousseau’s concerns and analyzes in depth the ways in which Smith crafted his arguments to defend commercial society against these charges. These arguments, Rasmussen emphasizes, were pragmatic in nature, not ideological: it was Smith’s view that, all things considered, commercial society offered more benefits than the alternatives. Just because of this pragmatic orientation, Smith’s approach can be useful to us in assessing the pros and cons of commercial society today and thus contributes to a debate that is too much dominated by both dogmatic critics and doctrinaire champions of our modern commercial society. (shrink)

I argue that (i) even though Adam Smith’s four stages theory has been criticized with good reasons as both vitiated by undue generalization from modern Europe to the first stage and made bottom-heavy by assumptions of modern episteme, yet, in his writings an alternative view emerges where the savage is not just crushed under the weight of want and isolation but is endowed with imagination and sympathy; (ii) his picture of the fourth stage is, far from a triumphal apology (...) of Capitalism, a tragic diagnosis of an inner tension between ambition and greed and their unintended beneficial effects; (iii) the tensions in the picture are not just a report of tensions out there, but also depend on Smith’s pre-comprehension of the phenomena he tries to account for; (iv) and yet, the tragic character of this picture is to be credited to his integrity; I summarize peculiarities of Smith’s peculiar outlook, post-empiricism, as well as its potentialities (sect 2). I then reconstruct his view of development of language and science, suggesting that his theory of association of ideas and imagination provides a consistent account of both science and lore, yielding a comparatively less ethnocentric evaluation of the savage mind (sect. 3). I reconstruct his virtually twofold reconstruction of subsistence in the rude and early state, arguing that he tends to ascribe inability to evolve to want and isolation and describes his own view of evolution as a necessary path but also that in several passages imagination and sympathy do play a role also for the savage (sect. 4). I compare Smith’s view of the first stage with his diagnosis of commercial society arguing that his reconstruction is burdened by eighteenth-century ideology as well as by modern episteme and I conclude with an ambivalent appraisal of Smith’s comparison between the polished man and the savage. -/- . (shrink)

Adam Smith is respected as the father of contemporary economics for his work on systemizing classical economics as an independent field of study in The Wealth of Nations. But he was also a significant moral philosopher of the Scottish Enlightenment, with its characteristic concern for integrating sentiments and rationality. This article considers Adam Smith as a key moral philosopher of commercial society whose critical reflection upon the particular ethical challenges posed by the new pressures and possibilities of commercial (...) society remains relevant today. The discussion has three parts. First I address the artificial separation between self-interest and morality often attributed to Smith, in which his work on economics is stripped of its ethical context. Second I outline Smith’s ethical approach to economics, focusing on his vigorous but qualified defence of commercial society for its contributions to prosperity, justice, and freedom. Third I outline Smith’s moral philosophy proper as combining a naturalistic account of moral psychology with a virtue ethics based on propriety in commercial society. (shrink)

From the perspective of a recent graduate, this article offers a critique of non-STEM higher education in England as unfit for purpose. Whilst universities blindly focus on employability, transferable skills and narrow bands of subject knowledge, the economic world around them has collapsed into absurdity. The graduate today is now faced with economic, social and cultural precarity which is unreflected in the rigid structures and narrow focus of their degree. This article seeks a radical return to the ancient principles of (...) a liberal arts education. Far from this being regressive, I argue that this education can and should be reclaimed and reinvigorated by the flexibility, difficulty and complexity of modern philosophy. Drawing on both Zygmunt Bauman’s liquid modernity and Nigel Tubbs' modern metaphysics, this article argues that higher education is far from obsolete but that its continuing relevance in late Capitalism can only arise from a return to the questions of how graduates can best thrive i... (shrink)

The essential guide to the life, thought, and legacy of Adam Smith Adam Smith (1723–90) is perhaps best known as one of the first champions of the free market and is widely regarded as the founding father of capitalism. From his ideas about the promise and pitfalls of globalization to his steadfast belief in the preservation of human dignity, his work is as relevant today as it was in the eighteenth century. Here, Ryan Hanley brings together some (...) of the world's finest scholars from across a variety of disciplines to offer new perspectives on Smith's life, thought, and enduring legacy. Contributors provide succinct and accessible discussions of Smith's landmark works and the historical context in which he wrote them, the core concepts of Smith's social vision, and the lasting impact of Smith's ideas in both academia and the broader world. They reveal other sides of Smith beyond the familiar portrayal of him as the author of the invisible hand, emphasizing his deep interests in such fields as rhetoric, ethics, and jurisprudence. Smith emerges not just as a champion of free markets but also as a thinker whose unique perspective encompasses broader commitments to virtue, justice, equality, and freedom. An essential introduction to Adam Smith's life and work, this incisive and thought-provoking book features contributions from leading figures such as Nicholas Phillipson, Amartya Sen, and John C. Bogle. It demonstrates how Smith's timeless insights speak to contemporary concerns such as growth in the developing world and the future of free trade, and how his influence extends to fields ranging from literature and philosophy to religion and law. (shrink)

This clearly argued, well-structured work may be seen by some as very revisionist in regards to Adam Smith, and by others as wholly noncontroversial. Werhane's central argument is that Adam Smith cannot be categorized as an advocate of pure "self-interest," in the sense it is interpreted today to defend a certain type of untrammeled capitalism. Rather, Smith's definition of "self-interest" is distinct from unabashed "selfishness." Werhane argues that the free-market system, according to Smith, can only operate optimally (...) and successfully in the context of a prior framework of rights and justice, to be provided by society. His arguments are also seen to be most relevant to a social context which embraces prudential self-restraint, small proprietorship, and theistic religion. (shrink)

Where exactly should we place Adam Smith in the cannon of classical liberalism? Smith's advocacy of free market economics and defence of religious liberty in The Wealth of Nations suffice for including him somewhere in that tradition.1 The nature and extent of Smith's liberalism, however, remain up for debate. One recent trend has been to characterise Smith as a proponent of social liberalism. This includes those like Stephen Darwall, Samuel Fleischacker and Charles Griswold, who have drawn attention to a (...) kind of descriptive moral egalitarianism in Smith.2 Humans, Smith seems to hold, are naturally disposed to valuing one another under a conception of equality. But that is not all these scholars suggest. They have also hinted at something more contentious ? the idea that, according to Smith, we value one another in a way resonant with contemporary notions of human dignity, conceived as the inherent value of persons grounding certain rights to, or restrictions on, treatment by others.3 In saying so, these scholars have hit upon something remarkable. However, I also think their arguments in this respect are both indirect and incomplete. Consequently, the full import of Smith's view remains obscure. This essay aims to bring some clarity. 1I intend this historically. I grant there are good reasons to be sceptical about the ultimate fate of liberty in capitalist society (e.g. Marxist reasons and reasons based on various postmodern critiques of enlightenment ideology). Also, the designation ?free market? should be understood loosely, as most scholars now agree it is a mistake to identify Smith with thoroughgoing laissez-faire economics. 2Darwall, S., ?Sympathetic Liberalism: Recent Work on Adam Smith?, Philosophy Fleischacker, S., A Third Concept of Liberty (Princeton: Princeton University Press, 1999) and On Adam Smith's Wealth of Nations (Princeton: Princeton University Press, 2004); and Griswold, C., Adam Smith and the Virtues of Enlightenment (New York: Cambridge University Press, 1999). Other major commentators holding some version of this view might include Raphael, D. D. The Impartial Spectator (New York: Oxford University Press, 2007) and Vivienne Brown, Adam Smith's Discourse: Canonicity, Commerce and Conscience (London: Routledge, 1994). 3See e.g. Fleischacker (2004), 205; Darwall at 142, 156 and Griswold at 235?239. However, one must read Fleischacker carefully, for he also uses the adjectival ?dignified? to express Smith's concern with what is ?honourable? or ?respectable? about persons, which use does not obviously match up with the notion of inherent value (see e.g. p. 207). Darwall's argument includes by far the most explicit discussion of ?dignity? as I've defined it. But as Darwall's article is ostensibly a book review (albeit a substantive one that addresses three books at once, including Griswold's), it cannot be called a direct inquiry. Griswold never explicitly puts his interpretation in terms of ?dignity?, but that is clearly what he is after. Thus Darwall also reads him that way. (shrink)

According to Hayek the democracy is only possible with a system of free market. If this is true, the western democracies are full of "aporias" and contradictions which end up in continual disillusions. Democracy has grown amongst capitalist societies which currently show these deficiencies such as a low participation of citiziens in the public life, the priority given to material goods rather than spiritual ones, etc. This article shows how these deficiencies are the central points in the system of (...) class='Hi'>Adam Smith's free market, the father of the capitalist system. (shrink)

Both Adam Smith and Herbert spencer, albeit in quite different ways, have been enormously influential in what we today take to be philosophies of modern capitalism. Surprisingly it is Spencer, not Smith, who is the individualist, perhaps an egoist, and supports a "night watchman" theory of the state. Smith's concept of political economy is a notion that needs to be revisited, and Spencer's theory of democratic workplace management offers a refreshing twist on contemporary libertarianism.

Usually viewed as the premier apologist for laissez-faire capitalism, Smith is seen in this new interpretation within the context of an earlier tradition that condemned the British aristocracy for relinquishing its moral obligation to promote the public good in favor of an unceasing pursuit of private gain. Through separate chapters on Mandeville, Bolingbroke, and Hume, Gallagher shows that Smith echoed civic humanist sermons against the avaricious inclinations of the nobles who profited most from commercial expansion. Unlike earlier critics, however, (...) Smith concluded that the most prudent response to aristocratic corruption was not to hold ministers, kings, and social notables to higher standards but to limit their access to political power. _The Rule of the Rich?_ accordingly shows that the case for limited government made in _The Wealth of Nations_ was not a defense of individual liberty so much as a concession to the apparent incompetence of the British upper class. (shrink)

Usually viewed as the premier apologist for laissez-faire capitalism, Smith is seen in this new interpretation within the context of an earlier tradition that condemned the British aristocracy for relinquishing its moral obligation to promote the public good in favor of an unceasing pursuit of private gain. Through separate chapters on Mandeville, Bolingbroke, and Hume, Gallagher shows that Smith echoed civic humanist sermons against the avaricious inclinations of the nobles who profited most from commercial expansion. Unlike earlier critics, however, (...) Smith concluded that the most prudent response to aristocratic corruption was not to hold ministers, kings, and social notables to higher standards but to limit their access to political power. _The Rule of the Rich?_ accordingly shows that the case for limited government made in _The Wealth of Nations_ was not a defense of individual liberty so much as a concession to the apparent incompetence of the British upper class. (shrink)

This paper foregrounds one argument in Rawls’s work that is crucial to his case for one, determinate, form of political economy: a property-owning democracy. Section one traces the evolution of this idea from the seminal work of Cambridge economist James Meade; section two demonstrates how a commitment to a property-owning democracy flows from Rawls’s own principles; section three focuses on Rawls’s striking critique of orthodox welfare state capitalism. This all sets the stage for an argument, presented in section four, (...) from the complexity of economic interactions to the strategy of making markets fair in the only feasible way that they can be made fair, namely, by “patterning” their effects. Section five concludes by asking whether any scheme of this general type is a realistic form of utopianism for a society such as ours. (shrink)

This contribution examines Arrighi’s effort in Adam Smith in Beijing to understand the trajectory of China’s political economy and the effects of that trajectory on the current reforms and changes in China. This article discusses these reforms from the perspective of China’s ’internal’ dynamics and suggests that Arrighi’s argument has been developed without proper reference to China’s complex realities. As an alternative, the contribution proposes a research-agenda that could better account for these realities.

Adam Smith in Beijing is a huge and sprawling book, but Giovanni Arrighi has done a great service with his world-historical vision of today’s capitalism and the growing rivalry between a fading American empire and the rising power of China. This is a task beyond most of us, and one bound to put the writer at risk of criticism from many quarters. The book shines in two regards. One is to make geographical dynamics central to world-history ‐ which (...) means seeing the global economy as more than the sum of development-histories of many places or, worse, the spread of capitalism from one country to another. A second virtue is embedding economic history in the politics of the international state-system, featuring the use of force, imperial expansion, and the role of hegemonic powers. Nevertheless, Arrighi’s economic-geographic analysis fails to convince on a number of critical points, such as the origins of industrial revolution, why Europe overtook China in early modern times, why the US economy faltered after 1970, why finance has run amuck in our time, how Japan grew so enormously after World War II, or why China is expanding so prodigiously today. (shrink)

I will argue in what follows that the reading of Smith which attributes to him a theory of the transition from feudalism to capitalism, and the implications which follow from it, are unfounded. There are three key aspects of the interpretation which I will challenge. First, that Smith's account of the destruction of feudal power by the progress of commerce is related to an explanation of the transition to the commercial stage; second, that the decline in baronial power incorporates (...) Smith's account of the ending of serfdom and a change in relations of production in the Marxian sense; and third, that the rise of international commerce -- the �prime-mover� in the whole process, is a force which is external to European feudalism. (shrink)

Giovanni Arrighi’s last book is compared with Andre Gunder Frank’s Re-Orient. The implications of Arrighi’s study of the East/West-comparison for comprehending world-historical evolution and the political issues of the current conjuncture are considered.

The story of the greatest of all philosophical friendships—and how it influenced modern thought David Hume is widely regarded as the most important philosopher ever to write in English, but during his lifetime he was attacked as “the Great Infidel” for his skeptical religious views and deemed unfit to teach the young. In contrast, Adam Smith was a revered professor of moral philosophy, and is now often hailed as the founding father of capitalism. Remarkably, the two were best (...) friends for most of their adult lives, sharing what Dennis Rasmussen calls the greatest of all philosophical friendships. The Infidel and the Professor is the first book to tell the fascinating story of the friendship of these towering Enlightenment thinkers—and how it influenced their world-changing ideas. The book follows Hume and Smith’s relationship from their first meeting in 1749 until Hume’s death in 1776. It describes how they commented on each other’s writings, supported each other’s careers and literary ambitions, and advised each other on personal matters, most notably after Hume’s quarrel with Jean-Jacques Rousseau. Members of a vibrant intellectual scene in Enlightenment Scotland, Hume and Smith made many of the same friends, joined the same clubs, and were interested in many of the same subjects well beyond philosophy and economics—from psychology and history to politics and Britain’s conflict with the American colonies. The book reveals that Smith’s private religious views were considerably closer to Hume’s public ones than is usually believed. It also shows that Hume contributed more to economics—and Smith contributed more to philosophy—than is generally recognized. Vividly written, The Infidel and the Professor is a compelling account of a great friendship that had great consequences for modern thought. (shrink)

This article compares Ayn Rand's trader principle with Adam Smith's invisible hand principle. Rand's defense of laissez-faire capitalism is often confused with Smith's defense of the market economy. White argues that Rand and Smith do not share the same ideas on the importance of self-interest or support the same sort of minimalist government, and that these are important and substantial differences between the two thinkers. He examines the antitrust case against Microsoft as one example of the importance of (...) these differences. (shrink)

entry for the Internet Encyclopedia of Philosophy at http://www.iep.utm.edu/s/smith.htm.

I discuss how the scientificity characterizing Adam Smith’s political economy has to exteriorize social conflict in order to sustain its objectivation of social interaction in terms of regulative laws. I claim that this exteriorization constitutes an internal point of subversion, not only because it resists economic objectivation, but first and foremost because it forces Smith to employ political strategies that both contradict and guarantee the scientificity of his theory. I show how the place of conflict in modern economy, according (...) to Smith, can actually be determined in three different ways: as a concrete place when it comes to the confrontations between workers and capitalists; as a theoretical place in the sense of being an arbitrary disturbance of the spontaneous organization of the market; and as a place that, as being the intersection between economic naturalization and social contingency, problematizes the scientificity of Smith’s political economy. In this sense, I develop three cases where Smith invokes an argumentative circularity that reveals the paradoxical politics of his economic scientificity, beyond its official laissez-faire politics: State coercion, monetary power and capitalist competition. (shrink)

In order to operate effectively, modern capitalism depends on agents who evince a rather morally undemanding type of moral character; one that is acquisitive, pecuniary, recognition-seeking and merely prudent. Adam Smith is considered to have been the key legitimiser of this archetype. In this paper I respond to the view that Smith is actually sceptical about the value of material acquisition and explore whether he really believed that the pursuit of tranquillity and virtue—especially beneficence—offers a superior route to (...) happiness than the commercial world of materialist acquisition. I approach these issues partly by considering the roles of beneficence and sympathy in Smith's system and partly by analysing the story of ‘The Poor Man's Son’ related in Book IV of The Theory of Moral Sentiments. As he narrates this story, Smith seems highly critical of the unrelenting drive for worldly success. But what is the real moral of the story? Should people contain their ambition for recognition and material succe... (shrink)

As late twentieth-century discourses of modernity and postmodernity invoke their Enlightenment heritage in a search for the origins of their present achievements and predicaments, Adam Smith's works are still seen as a canonic representative of that heritage. Smith has long been evoked as the ‘father’ of economics and the original proponent of laissez-faire capitalism, but the political changes in recent decades have reconstituted his iconic status. With the full range of Smith's published and unpublished writings and lectures now (...) widely available, there has been a huge growth in the scholarly literature on Smith which has subjected this traditional view to searching questions. The overwhelming conclusion to emerge is that Smith's works display a subtlety and complexity that is at odds with the received image of Smith as the spokesman of modernity, but the diversity of interpretation raises some difficult methodological issues. (shrink)

Smith's appropriation by neoliberal theorists as the progenitor of economic liberalism and capitalism has recently been challenged by a phalanx of counter-positions. In a concerted effort ‚to salvage the real Smith’, they rediscover the enlightenment philosopher who was very critical of ostentatious display of wealth and envisioned a society based on moral concerns rather than on the pursuit of self-interest. This article discusses recent developments in the battle over the economist's and philosopher's heritage.

I discuss how the scientificity characterizing Adam Smith’s political economy has to exteriorize social conflict in order to sustain its objectivation of social interaction in terms of regulative laws. I claim that this exteriorization constitutes an internal point of subversion, not only because it resists economic objectivation, but first and foremost because it forces Smith to employ political strategies that both contradict and guarantee the scientificity of his theory. I show how the place of conflict in modern economy, according (...) to Smith, can actually be determined in three different ways: as a concrete place when it comes to the confrontations between workers and capitalists; as a theoretical place in the sense of being an arbitrary disturbance of the spontaneous organization of the market; and as a place that, as being the intersection between economic naturalization and social contingency, problematizes the scientificity of Smith’s political economy. In this sense, I develop three cases where Smith invokes an argumentative circularity that reveals the paradoxical politics of his economic scientificity, beyond its official laissez-faire politics: State coercion, monetary power and capitalist competition. (shrink)

A new edition of Adam Smith's Theory of Moral Sentiments, an important text in the history of moral and political thought.

Giovanni Arrighi was a leading figure in the development of world-systems theory and also contributed to a range of debates in Marxist thought. This symposium engages with Arrighi’s last book, Adam Smith in Beijing, which was the final instalment in his ‘trilogy’, following The Long Twentieth Century and Chaos and Governance in the Modern World System. This Editorial Introduction traces the broad trajectory of Arrighi’s ‘trilogy’ and its concern with systemic cycles of accumulation, highlights additional major contributions by Arrighi, (...) and sketches some of the central arguments of the five symposium articles. *. (shrink)

Considerable controversy was stirred by the contrast between the specific approaches to public policy contained in the first draft of the Catholic bishops' letter on the U.S. economy and the policies favored by the Reagan administration. However, a much more basic contrast actually existed between the bishops' underlying vision of economic life and contemporary capitalism. The pastoral challenges a separation between moral criteria and economic activity that is deeply embedded in modernity itself. Indeed, the splitting off of economic life (...) from its moral-religious matrix is seen by the bishops' critics as a positive, defining feature of democratic capitalism. The critics see the separate economic and moral-religious spheres related by due balance; the bishops, while acknowledging an autonomy to economic life, emphasize that its fundamental choices remain moral. The bishops (and, for different reasons, their critics) have preferred to minimize the contrast between the letter's vision and the contemporary economy. They avoid any clearcut judgment on the economic system by stressing pragmatism and reforms; but implicitly they are granting a strictly conditioned acceptance of reformist capitalism, the condition being the system's openness to questioning and change. (shrink)

A recent wave of scholarship has challenged the traditional way of understanding of self-command in Adam Smith’s Theory of Moral Sentiments as ‘Stoic’ self-command. But the two most thorough alternative interpretations maintain a strong connection between self-command and rationalism, and thus apparently stand opposed to Smith’s overt allegiance to sentimentalism. In this paper I argue that we can and should interpret self-command in the context of Smith’s larger sentimentalist framework, and that when we do, we can see that self-command (...) is ‘sentimentalized’. I offer an interpretation of Smithian self-command, arguing that self-command has its motivational basis in the natural desire for the pleasure of mutual sympathy; that self-command is guided by the sentimental standard of propriety; and that self-command works through the psychological mechanism of the ‘supposed’ impartial spectator. And I show that Smithian self-command is a home-grown, sentimentalist virtue and not an awkward rationalistic transplant. (shrink)

This article presents a philosophical dialogue as a means of modelling approaches to capitalism and society over the past two centuries. Adam Smith’s views of economics were located in a moral and cultural context, derived from the Scottish Enlightenment, which has been disregarded by enthusiasts for the free market. Through an imagined dialogue with German artist Joseph Beuys and Dutch businessman Paul Fentener Van Vlissingen, using their words, we identify a European position which both preceded and follows the (...) period of industrialisation. Using philosophical dialogue as a form of intellectual forum theatre, we hope to stimulate debate. (shrink)

Unfortunately, Adam Smith’s undeserved legacy as a proponent of laissez-faire and liberal institutions at the international scope inhibits profiting from his refined analysis of international affairs. I argue that the Wealth of Nations’ chapter on colonies contains Smith’s discussion of the sovereign’s adaptation to ignorance in global politics. I examine the sense in which the sovereign is ignorant according to Smith and how sovereigns adapt to ignorance with varying success. His comparative analysis suggests that reduction of one’s share in (...) ignorance is not always desirable, and a priori rejection of ignorance is impractical because it deprives of a potentially advantageous resource. A careful reading of his work enables learning from his approach to global politics, without filtering it through his ideas on the free market. (shrink)

The theory of moral sentiments.--Lectures on justice, police, revenue and arms.--An inquiry into the nature and causes of the wealth of nations.