Adam Smith and the contemporary world

Amartya Sen

doi:10.23941/ejpe.v3i1.39

Abstract

This paper argues that many of Adam Smith's insights, particularly those in his Theory of moral sentiments, have a relevance to contemporary thought about economics and ethics that is currently underappreciated. In economics, for example, Smith was concerned not only with the sufficiency of self-interest at the moment of exchange but also with the wider moral motivations and institutions required to support economic activity in general. In ethics, Smith's concept of an impartial spectator who is able to view our situation from a critical distance has much to contribute to a fuller understanding of the requirements of justice, particularly through an understanding of impartiality as going beyond the interests and concerns of a local contracting group. Smith's open, realization-focussed and comparative approach to evaluation contrasts with what I call the "transcendental institutionalism" popular in contemporary political philosophy and associated particularly with the work of John Rawls.

Highlights

This paper argues that many of Adam Smith’s insights, those in his Theory of moral sentiments, have a relevance to contemporary thought about economics and ethics that is currently underappreciated
The particular contribution of Adam Smith that is most clearly celebrated today—and has certainly not been neglected—is the way he helped to reshape the subject of economics
What is important to note, is Smith’s recognition that even when we are moved by the implications of moral arguments, we may not see them in that explicit a form and may perceive our choices in terms of acting according to some wellestablished practices in society. As he put it in The theory of moral sentiments: Many men behave very decently, and through the whole of their lives avoid any considerable degree of blame, who yet, perhaps, never felt the sentiment upon the propriety of which we found our approbation of their conduct, but acted merely from a regard to what they saw were the established rules of behaviour (1975 [1790], 162)

Summary

Introduction

This paper argues that many of Adam Smith’s insights, those in his Theory of moral sentiments, have a relevance to contemporary thought about economics and ethics that is currently underappreciated.

Results

Conclusion