Adam Smith and the legacy he left to modern capitalism

Author: Wohan
Publisher:
Publish Date: 2006-09-01
Features: Adam Smith is widely recognized as the founder of modern capitalist economics, and his masterpiece The Wealth of Nations is also considered the cornerstone of liberal economic theory. However, it would be one-sided to pass judgment on Smith and his theories based solely on this. In his other two works, The Theory of Moral Sentiments and Lectures on Jurisprudence, we discover that Smith was not a selfish individualist who regarded self-interest as the sole driving force of economic activity. He believed that the so-called liberalist views, including the "invisible hand," could only function under specific conditions. These conditions are: an inner guardian in the form of a just and compassionate observer; a legal system centered on fairness as the fundamental framework for social operation; and free competition under conditions of complete equality. This book reveals Smith's little-known theoretical explorations in the field of economic ethics, offering profound insights into a more comprehensive understanding of Smith and his economic theories. In our contemporary society, as we transition from a focus on mere economic growth efficiency to greater attention to social equity, these theoretical explorations hold even greater practical significance.