Adam Smith and the legacy he left to modern capitalism

Author: (American) Woharan, translated by Xia Zhenping
Publisher:
Publishing Date: 2006-09-01
Features: Adam #8226; Smith is widely recognized as the pioneer of modern capitalist economics, and his masterpiece The Wealth of Nations is also considered the foundational work of liberal economics. 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 find 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 fair and compassionate observer; a legal system centered on the principle of justice as the basic framework of social support; and free competition under conditions of complete equality. This book reveals Smith's little-known theoretical explorations in the field of economic ethics, which offers profound insights into a more comprehensive understanding of Smith and his economic theories. In our current society, as we transition from a purely growth-oriented economic efficiency focus to one that pays more attention to social equity, such theoretical explorations hold even greater practical significance.