Rethinking the "Das Adam Smith Problem": reconciling his moral and economic philosophies
The "Das Adam Smith Problem" refers to the perceived contradiction between Adam Smith's "The Theory of Moral Sentiments" (emphasizing sympathy) and "The Wealth of Nations" (focusing on self-interest). Initially formulated by 19th-century German economists, this problem is now largely considered a misunderstanding by contemporary scholars. They argue that Smith's philosophy forms a coherent whole, uniting ethics and economics through concepts like empathy and the "invisible hand" as a metaphor for societal benefit from individual motivations. The article explains that Smith extended his moral philosophy into economics, viewing markets as extensions of morality, and his two works are compatible, engaging with different points on a spectrum of self-interest and empathy.
Key Points
- The "Das Adam Smith Problem" highlights the perceived conflict between Adam Smith's works on sympathy and self-interest.
- Modern scholars largely view this "problem" as a misunderstanding, arguing for a coherent philosophical system in Smith's writings.
- Smith's concept of the "invisible hand" is seen as a metaphor for how individual motivations can benefit society when properly directed.
- His moral philosophy is considered an extension into economics, with markets viewed as moral extensions rather than voids.
- The two books are seen as compatible, exploring different aspects of a unified system through the lens of empathy.
Exam Facts
- Adam Smith's two major works are "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776) and "The Theory of Moral Sentiments" (1759).
- The "Das Adam Smith Problem" was first formulated by German economists like Wilhelm Hasbach and August Oncken.
- Jacob Viner, David D. Raphael, and Alec A. Macfie are scholars who rejected the "problem."
- Amartya Sen and Leonidas Montes are contemporary scholars who have written on this topic.
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