Customer Reviews

On Adam Smith (Wadsworth Philosophers Series)

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This is a very good "Short Notes " type introduction to Smith which succeeds in demonstrating that there never was any Adam Smith problem( a supposed conflict between the Theory of Moral Sentiments and The Wealth of Nations )because Smith's concept of self interest(if Smith had used the term " enlightened self interest " the " Adam Smith Problem " would never have occurred.It is very similar to the economists' incredible misinterpretation of Keynes's term " nonnumerical" probabilities,by which Keynes meant interval estimates using 2 numerals and not one) has absolutely nothing to do with greed,selfishness,avarice,or exploitation.Second,the author shows the close connection Smith saw between economics and ethics(morals).Economic decision making involves ethical considerations.It is the Benthamite Utilitarian(the modern version of Benthamite Utilitarianism is the subjective Bayesian approach to probability) approach that essentially succeeded in its attempt to completely separate economics from ethics.The close connection between economics and ethics in Smith's approach is displayed in Smith's nearly 55 page discussion of the importance of providing universal education and religious instruction to the entire population,free if necessary.
Finally ,the author demonstrates that Smith was not a libertarian or free market ideologue.Smith had a deep understanding of market failure and externalities.Smith recognized that government would have to deal with the undepletable negative externality problem created by the division of labor that impacted the totality of society.I recommend this book.I have deducted one star only because the book is too short.