Adam Smith The Wealth Of Nations Analysis

In The Wealth of Nations, Adam Smith describes a modern and efficient economy as one in which citizens have specialized skills that they are able to exchange for goods and services from others. Smith’s writings on this topic contributed to his title as the “Father of Modern Economics”, however, in addition to economics, Smith also wrote extensively about morality. The Theory of Moral Sentiments begins with a description of sympathy and how it contributes to a morally just society. It is evident from these two works that Smith aimed for society to have relatively unified moral and economic visions. However, modern society has not lived up to the standards put forth by Smith, largely because his ideas were questioned and then pushed aside through …show more content…
Although it was Hayek’s intention to continue to help societies to flourish by putting forth his works, the dismissing of altruism in his writings also undermined the value of human empathy that Smith described in The Theory of Moral Sentiments. Smith valued sympathy to such a high degree that he stated that “ to feel much for others and little for ourselves, that to restrain our selfish, and to indulge our benevolent affections, constitutes the perfection of human nature” (Smith, Part 1, Ch.5). These actions are not the mere following of rules and tradition that Hayek described, but are rather altruistic acts that are deliberately intended for the benefit of others. It is by having sympathy and being altruistic that people keep a moral basis in economics. Once a society is no longer based upon mutual benefit and mutual concern, economics and morality alike take a …show more content…
Although, it is beneficial for economies to grow past the models set forth for them hundreds of years prior, it is also important to maintain a moral foundation to prevent corruption, something that the American economy has failed to do. Rather than follow Smith’s plan for beneficial self-interest kept in balance by strong sympathy or concern for the well being of others, the economy has lost sight of these things in an effort to maximize growth and transcend limits. Actions such as these were supported by Hayek, who believed that altruism was best exhibited not by traditional altruistic acts, but by simply following rules and traditions that were in place in flourishing societies. Because of this, economics lost the sympathy and trust that balanced the system. In order to restore this balance, it is necessary that moral foundations, such as the ones proposed by Cavanaugh and Smith, be reintegrated as vital contributors to the function of modern