Adam Smith's Mistake: How a Moral Philosopher Invented Economics and Ended Morality [Paperback]

Kenneth Lux (Author)

Book Description

Publication Date: October 31, 1990

Adam Smith, with his book "The Wealth of Nations", in the late 18th century was one of the founders of economics as a discipline. His central theory concentrates on the value he places on self interest, arguing that it is not from the "benevolence" of others that we receive what we need but out of their regard for their own self interest. When each person pursues his or her own self-interest, society as a whole is led to a condition of benefit for all. The pure experiments in this approach, laissez-faire economics, was seen to fail in the industrial misery of Charles Dickens' England and in the United States in the financial scandals of the trusts and cartels and the economic booms and busts that eventually led to the Great Depression. Could Adam Smith have made a mistake, a mistake that still colours the core of modern life? This book argues that he did. Dr Lux argues that self-interest does not lead to a good society, but instead to social strife, ecological damage and abuse of power. Another principle must exist to moderate self-interest and it is one that goes by many names. Dr Lux argues that we have been mislead by economics into calling selfishness and greed a good thing. Instead this book argues that good only comes out of good. With the adequate recognition of this mistake we, as a society, will be able to move forward into a time where selfishness can no longer hide under a protective cover of economic justification.

--This text refers to an out of print or unavailable edition of this title.

Editorial Reviews

From Library Journal

The coauthor of Humanistic Economics (Boostrap Pr., 1988) asserts that, by enshrining self-interest as the core of economics, Smith mistakenly detoured the discipline into a moral dead end. He points to the abuses of the Industrial Revolution in England and the rise of the socially irresponsible "robber barons" in the United States as examples of the ethical void at the heart of the laissez-faire philosophy. After examining Smith and his critics, Lux attempts to demonstrate the benefits of benevolence in economic relationships. Confined primarily to pre-20th century examples and authors, the volume is somewhat limited in scope and selective in interpretation. Still, it can be recommended as an example of the humanistic critique of conventional economics.
- Richard C. Schiming, Mankato State Univ., Minn.
Copyright 1990 Reed Business Information, Inc.

Product Details

• Paperback: 240 pages
• Publisher: Shambhala; 1st edition (October 31, 1990)
• Language: English
• ISBN-10: 087773593X
• ISBN-13: 978-0877735939
• Product Dimensions: 8.3 x 5.5 x 0.7 inches
• Shipping Weight: 11.2 ounces
• Average Customer Review: 4.8 out of 5 stars  See all reviews (4 customer reviews)
• Amazon Best Sellers Rank: #1,874,575 in Books (See Top 100 in Books)

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10 of 12 people found the following review helpful:

5.0 out of 5 stars will open your eyes about ECON 101, December 16, 2000

By 

John Ronald (Sugar Land, Texas) - See all my reviews
(REAL NAME)   

This review is from: Adam Smith's Mistake: How a Moral Philosopher Invented Economics and Ended Morality (Paperback)

Kenneth Lux's and Mark A. Lutz's collaborative and individual efforts should be more widely known, especially among Left Intellectual circles, and that they aren't is quite a shame.

It's also a pity such an earthshattering book as this is now out of print, for it diagnoses the rot at the core of Classical Neoliberal economics so eloquently and plainly. It is a strongly ethical critique that lays bare a critical mistake in the reasoning of Adam Smith...a mistake that has been siezed on by all subsequent Neo-liberal "classical" economists and is the only thing they care to remember about Adam Smith...It was joked once on NPR that Adam Smith couldn't get a job in todays' business press because he'd be percieved as "too lefty". This is actually quite true...if, as Noam Chomsky has pointed out, anyone would actually bother to mull thru the whole of Smith's works. But no, what gets lached on to is the selfishness doctrine (Smith's Mistake) as the key economic engine, and all of Smith's moral reservations and other conscientious handwringing are forgotten/rendered mute by this mistake...and it is upon this mistake that the whole unjust real-existing capitalist world order has been built and continues to rest.

"So?" you might say, "Marx already did this in Das Kapital". Well, yes, but not quite. Lux knows about Marx, of course, and has a few humanistic/ethical choice barbs to toss his way also.

Although Lux does not use this language to describe his position, his solution to the dilema does basically come from the anarcho-syndicalist circles of Spain (both during and even, covertly, AFTER the Spanish Civil War), plus a little Gandhi & MLK thrown in for good measure. That summary is a bit too pat, and it's hard to summarize briefly and still do the book justice; JUST READ IT. You will never look at economics quite the same ever again.

All in all a fine book that has pride of place on my bookshelf. Worth conducting an "out of print" booksearch for, by all means.

5 of 6 people found the following review helpful:

5.0 out of 5 stars Adam Smith's Mistake ... A Book Not to be Missed!!!, February 24, 2002

By 

Ashok Menon (Petaling Jaya, Selangor, Malaysia) - See all my reviews

This review is from: Adam Smith's Mistake: How a Moral Philosopher Invented Economics and Ended Morality (Paperback)

Seldom if ever does one come across a book, so succinct, so seductive and so persuasive in its analysis and treatment on what constitutes the core and foundation of the subject of modern economics. Tracing its development to the times of Adam Smith (and earlier) and the subsequent edification of his work by the motivated self interests of Malthus, Ricardo and others, Lux lays bare the corrupting and narcissist venality of a depraved era that was fashioned into respectability, to spawn the cataclysmic upheavals of the past three centuries, spanning countries and continents of planet earth.

Kenneth Lux argues forcefully that Adam Smith's thesis 'The Wealth of Nations' is but a clarion call to Greed, despite Smith's original intentions to the contrary.

Long after this 'mandate for greed' was absorbed into the fabric of accepted social behaviour and instituted as the norm for legally sanctified economic intercourse, the nations of the world convulse rapaciously with the disproportionate spread in wealth. And the ecosystems of the planet, its air, its earth and its water tether on the brink of collapse.

With the keen insight of the psychologist Kenneth Lux offers a glimmer of redemption from the present dismal state of affairs... "temper 'self interest' with 'benevolence' and things can become very different" he counsels. He does not claim originality for this idea, a truism to be found in all the old books of wisdom. Something mankind has lost sight of and is in urgent need of rediscovery.

Sadly this book by Kenneth Lux "Adam Smith's Mistake: How A Moral Philosopher Invented Economics And Ended Morality", Shambhala 1990, is out of print and out of stock. A few second hand copies retail at three times the original cost!

1 of 1 people found the following review helpful:

5.0 out of 5 stars Adam Smith's Mistake, July 19, 2009

By 

Brian R. Smith "brsmith63" (Salt Lake, UT) - See all my reviews
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This review is from: Adam Smith's Mistake: How a Moral Philosopher Invented Economics and Ended Morality (Paperback)

Adam Smith's Mistake

One of my favorite econ books. Written by a non-economist so eaier to read than most econ books. Focus of the book is on Adam Smith's self-interest thesis. This is NOT anti-Adam Smith but an excellent analysis of the limits of free markets. The solutions presented are interesting but not as strong. I consider this book a must read for anyone with an interest in economics.