Primary Sources:
Smith, Adam. The Theory of Moral Sentiments. MetaLibri, 2006, ibiblio, https://www.ibiblio.org/ml/libri/s/SmithA_MoralSentiments_p.pdf, Accessed 12 Oct. 2022.
In his first publication, Smith creates his framework of human psychology on which he later builds his economic theory. A core idea in this work is the “impartial spectator,” an inner conscience that we must try to keep unbiased. He also notes that humans are naturally apathetic. Should tragedy happen across the world, but not in our local environment, we are less likely to be upset by it than by something much less tragic happening to us. However, he also believes that most people are unwilling to harm others for personal gain. Of most consequence to his future work, he claims that people are driven by an illogical desire to succeed. He believes that we work ourselves to the bone to avoid other’s pity, but that we would really be much better off if we lived a much more peaceful and content life. This paves the way for his work in economics, as it suggests that people will strive to achieve financial success. So, if financial success is linked to the greater good, people will work towards the greater good.
Smith, Adam, and Michael Lewis. “An Inquiry into the Nature and Causes of the Wealth of Nations.” The Real Price of Everything: Rediscovering the Six Classics of Economics, Sterling Publishing Co., Inc., New York, NY, 2011, pp. 17–652.
In The Wealth of Nations, Adam Smith aims to uncover the reasons for the disparity in the prosperity of nations and of individuals, the mechanics of the labor market, and analyze the meaning of and driving forces behind prices. While Smith mainly draws conclusions deduced from his own assumptions, he uses data to support and motivate many of his claims. One of Smith’s most profound quotes is ,“It is not by the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest” (Smith 30). This is the primary concept that Smith uses to explain the workings of capitalism, that people work in their own self interest. While he notes that many workers may suffer at the hands of capitalism, the system provides incentives to supply goods and services to those who are willing to provide compensation.
Secondary Sources:
Robert, Heilbroner. “The Theory of Moral Sentiments of Adam Smith.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 1999, https://www.britannica.com/biography/Adam-Smith/The-Theory-of-Moral-Sentiments.
This entry is an encyclopedia article describing Smith’s life and works. There is a large section interpreting his ideas. It provides not only a summary of and background of his writings, but also details some current and former arguments regarding them.
Fleischacker, Samuel. “Adam Smith’s Moral and Political Philosophy.” Stanford Encyclopedia of Philosophy, Stanford University, 15 Feb. 2013, https://plato.stanford.edu/entries/smith-moral-political/#Bib.
Although this article provides a summary of Smith’s Theory of Moral Sentiments, it is primarily a commentary and response to the work. It begins by contrasting Smith’s philosophical style to others of his time, especially those writing in moral philosophy. In addition to describing the pros and cons of Smith’s methodology, this article uses Smith’s lecture notes, in conjunction with the ideas in The Theory of Moral Sentiments, to flesh out his views on political philosophy.
Stigler, George. “From 1976: What Were Adam Smith’s Biggest Failures?” The University of Chicago Booth School of Business, https://www.chicagobooth.edu/review/what-were-adam-smiths-biggest-failures.
While the previous critique of Smith’s work focused primarily on his moral philosophy, this article is exclusively concerned with his economic theory. It splits his ideas into four categories: success that were rightly so, successes that should have been failures, failures that were rightly so, and failures that should have been successes. By splitting the ideas in this way, it paints a clear picture of Smith’s errors in both his ideas and his ability to communicate them.