The first work of Smith is called The Theory of Moral Sentiments. This work suggested that human beings were driven by the nature of morality and motive of morality. The concept of nature of morality was actually inspired by the teacher of Smith, Francis Hutcheson. Hutcheson’s view on the nature of morality stated that “man was moved to make moral judgment by particular “sentiment and feelings,” not by reason and self-love” (Teichgraeber III 1986, 129), which means that in the view of nature of morality, the decision made by individuals were not motivated by rational reasoning nor self-interest but feelings and emotional attachment toward the target when they tried to fit into their situation; and it is called sympathy. Due to the restriction of nature of morality, human beings tend to control their behaviors on conducting outrageous behaviors ...
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...would also trigger an unintentional effect that would eventually benefited the society as a whole by maximizing the total profit if individuals all follow their self-interest to behave. Newbert explained “For, only capitalism allows individuals to automously choose their own course of action, provided that in so doing, they do not violate the rights of others by forcing them to buy or sell a given product or service” (Newbert 2003, 253). From here, we can realize Smith’s insight towards the early form of capitalism. Finally, Smith’s suggested that free trade is the only way that helps a nation to sustain stable economic growth. He thinks that mercantilism is a barrier of the growth of a nation. He claimed that a nation will be able to maximize the wealth only if they use their competitive advantage on production and trade the surplus under the free trade economy.
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