Customer Reviews

The Essential Adam Smith

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After reading Heilbroner's The Worldly Philosophers, I decided to read Smith's Wealth of Nations, but found myself daunted by the length and language of the book. Then I discovered Heilbroner's Essential Adam Smith and was hooked. The book offers the essential parts of Wealth of Nations, as well as a good sampling of some of his other works. As a result, I have not only read the entire Wealth several times, but have also read everything by and about Smith that I can find. Heilbroner's book is a good way to get to the heart of Smith's thinking, but, like me, you will probably find yourself wanting to learn more about the man, his ideas, and his life. Enjoy!

To understand capitalism, read the Wealth of Nations. But, to really understand it, as well as the other ideas of Adam Smith, read his essential works. This book allows the reader to fully grasp the concepts of capitalism and get a clear picture of how and why it works. Thankfully, Heilbronner did not dilute the works of Smith, he just condensed them for the modern day reader. With this book you can cut through the jargon and see the real points that Smith was trying to get across.

Content Summary: Adam Smith wrote two major works in his life - "The Theory of Moral Sentiments", which is lesser known, and his master work "The Wealth of Nations." Smith is remembered as one of the founding fathers of classical economic theory, known to us today as free market capitalism. In this concise summary, Heilbroner successfully gives us the essence of Smith's moral and economic theory Smith accomplished in both books.

Analytical Review: Heilbroner says that many people quote Adam Smith for their ideas, without actually having read Smith. This short work should help correct that, and I would recommend it (especially for the second half on The Wealth of Nations) as a concise introduction to Smith's thought. Both books would be over three times the length of this volume, so Heilbroner has slimmed the work down considerably, without sacrificing too much of its important meaning. Reading Smith, one is surprised how much his labor theory of value initially correspond to that of Marx, but Smith is much more comfortable with the use of money, and shifts away from the labor theory to market and exchange as the center of value. Like Marx's Capital, there may be parts to agree with, parts to dissent from here. Smith clearly would not give "carte blanche" to the capitalist, as many later thinkers would maintain. In fact Smith quite succinctly says that we should very skeptical of any legislation that is heavily sponsored by the commercial sector, as their interests are often contrary to the public interest. While Smith champions the free market, he has also some consideration for the poor. What he lacks, however, is the crystal clear solidarity with the working poor that is demonstrated in Marx's Capital. Smith's theory makes it seem as if capitalism results in a tide of wealth where all boats rise. This indeed may be true, but it also results in very gross and considerable inequalities. If people would read both works before they may hasty judgments about capitalism or socialism, it would certainly be beneficial.

It has often been said that in order to understand Smith's position in economics, you have to read both of his great works, The Theory of Moral Sentiments, and The Wealth of Nations. Together, these two works number more than 1000 pages. The Essential Adam Smith is a valuable alternative to the work of one of the most over-quoted but under-read thinkers of all time.

The Theory of Moral Sentiments is a philosophical treatise on morality. Smith examines the very nature of moral behaviour, tracing each case where moral decisions take place, and examining why moral behaviour is possible and why it is practised. The work can also be understood as a work of early psychology, although it is not widely read today in either field. It clearly shows, however, that Smith's position on human nature was not one which considered humans as merely self-interested individuals, an idea which is often connected with Smith. In contrast, Smith clearly believed that human beings have both a self-interested nature, and a compassionate one.

The Wealth of Nations is the work of which Smith is most famous for, and it is considered the first treatise of modern economics. The division of labour, the efficiency of markets, the labour theory of value, the formation of prices, the theory of rent and the role of the state are discussed, among other things, and are all included in Heilbroner's selections. Smith's Wealth of Nations laid the foundations for later economic thinkers such as Ricardo and Marx, so it is not a surprise that these thinkers share a lot of similarities in their analyses with Smith's theories.

Other minor works of Smith are also included, such as extracts from his History of Astronomy and a number of his letters.

Adam Smith's work is by no means sufficient in understanding modern economics and the current state of capitalism. Smith was writing at a time when capitalism was only emerging, while a number of his theories have been revised or abandoned since then. It is however a solid start. Adam Smith has been both extremely influential in modern social science and extremely misrepresented by people who try to associate him with their economic or political world view, but have rarely understood his position, or read his works.

Adam Smith obviously is not the easiest read but this book does a great job of pointing out the important chapters and sections of Smith's two books. In fact, this book introduced me to "Theory of Moral Sentiments" which seems like a very interesting book too. I have enjoyed Robert Heilbroner's other books and this is right up with them. You can see that he is very passionate about Adam Smith's work and we all benefit from Heilbroner's guidance.

Our grandson-in-law is so happy to have this book. Smith's book will enhance his college education in business. Thank you.