Steuart Vs. Smith

Hegel’s idea that the modern world of civil society is created through selfish ends and a system of complete interdependence is an idea that is shared with many other writers. Specifically, the 18th century writers of Steuart and Smith share Hagel’s point of view. Both Steuart and Smith believe self-interest is essential in explaining the creation of the modern world. They agree that when individuals peruse their selfish interests and in turn, become dependent in one another, and consequently create the modern economy. However, they differ in the nature of how these two principles interplay in economic activity (production and exchange).
In Steuart’s point of view, the economy is a social system. He calls it the political oeconomy. Steuart …show more content…
To Steuart, the Statesman is like the captain, the crew is the people; ship A is the level of development of trade and industry. All former factors are social and historical factors. But ship B that represents the natural advantages and the trade wind represents self-interest, are natural factors. The natural factors are important to how the ships function but they are not what determine how it’s run. It is the social factors that determine those ideas.
In sharp contrast to Steaurts views, are Smith’s. Smith believes self-interest is a natural human motive like Steaurt. However, he believes that self-interest is directly related to the modern economy. He thinks it’s the underlying reason to why the economy works and it completely natural.
Smith identifies the propensity to exchange as innate in human beings. He illustrates that because people are self-interested they will seek to appeal to other’s self-interests in the pursuit of their own interests to get what is most advantageous to them. In other words, people want to help themselves but to do so they need others thus people have an innate propensity to