Criticism In Adam Smith's Wealth Of Nations

Adam Smith is now universally regarded as one of the fathers of economics. He is best known for the profound ideas and novel theories on capitalism presented in his book Wealth of Nations. Some ten years prior to the release of that book, however, he wrote his equally important Theory of Moral Sentiments, which is lesser known and less referred to in political economic literature. That work forms the underpinnings of Smith’s economic theories and conclusions set forth in his now classic Wealth of Nations where it makes certain assumptions of human social behavior.
Smith is concerned with psychology and economics and manages to weave them together throughout both books. He uses Theory of Moral Sentiments to discuss human behavior in explaining what he believes makes a healthy society. A healthy society to Smith includes: (i) middle class virtue and wealth; (ii) sympathy and fellow feeling; (iii) the so called impartial spectator: (iv) a love of order; (v) and prudence.
In Wealth of Nations, Smith expands upon what is required of a healthy society to …show more content…
In Theory of Moral Sentiments, the impartial spectator is what drives us down a moral path because we imagine how others would view our behaviors. This impartial spectator is like our own personal imaginary judge. This ties into the legal system presented in Wealth of Nations because it shows that it is in human nature to avoid embarrassment and shame. A problem in isolating arguments seen in the Wealth of Nations without reviewing Theory of Moral Sentiments is that in not understanding Adam Smith’s interpretation of human individual psychology and how that interacts with our surrounding neighbors we cannot fully understand human