Theory of Moral Sentimen: Adam Smith

792 Words2 Pages
bulb-icon

Recommended: compare capitalism to communism

Unfortunately, the vast majority of human trades do not require imagination - they do not even require intelligence. Why employ a doctor with 8+ years of schooling, if his job could be automated?

The problem with this premise is that innovation generally requires an affluent background. First off education is a must. The person who could cure cancer has probably been born many times over already - but most likely in the inner city somewhere, and will never be given the education for his/her intelligence and skills to bear fruition. Secondly, innovation requires leasure time. Bill Gates tinkered in his parents' garage on their dime - its unlikely he would have founded Microsoft if he was working 12 hours a day in a coal mine.

And despite all that - thousands of innovations due occur every day in America - but these innovations are not owned by the individual, but by the companies who employ them - meaning the inventor will never see a dime of the profits from his innovation. Worse still, these innovations are deliberately withheld from the public - our greatest victories against disease in the field of medicine occurred in the 19th and 20th centuries when the vast corporations of today did not exist. New vaccinations could be distributed for free.

Adam Smith, in his Theory of Moral Sentiment, stated that morality is a crucial part of making capitalism work. Unfortunately, we have more examples of capitalism without morality - such as American companies machine gunning or even bombing uncooperative workers. Or even today - a Texan fertilizer plant being blown to smithereens and taking half the town with it. The response? Texas is declared the most "business friendly" state and large corporations are flocking to it - be...

... middle of paper ...

...rams bombarding Americans, and audiences overseas - essentially copy/pasting a Marxist argument with new labels.

The fatal flaw of capitalism is the assumption that infinite growth can be achieved with finite resources - hence why capitalist systems have consistently crashed again and again throughout the years when their governments fail to enforce a sensible macro-economic policy. Countries that have successfully navigated through economic disasters are those that have allowed capitalism to work unfettered in micro-economics, but enforced a strong macro-economic policy.

Think of it this way - how well would the military work if there were no generals, if every unit acted as they pleased with no direction whatsoever? The consequences would likely be equally disastrous as micromanagement. The key is finding a happy balance between freedom and direction.

Show More
Related

  • The Unnecessary Paranoia of Margaret Atwood’s Oryx and Crake

    1104 Words  | 3 Pages

    The pharmaceutical and biotech industries must be free to develop and research life saving medicines and other advancements that will benefit society. If this cannot be done, progress would never be made. People would still be contracting polio a...

    Read More

  • David M Kotz's The Rise And Fall Of Neoliberal Capitalism

    1092 Words  | 3 Pages

    An economic and political system in which a country 's trade and industry are controlled by private owners for profit, rather than by the state is known as Capitalism. Many components make up a capitalist society such as the factors of production are privately owned. The economic transactions take place in markets where buyers and sellers interacts, and many business and employees are free to pursue their own self interest. The United States is known to follow the ideals of a capitalism throughout the years but as many as 32 recessions have taken place in the last 150 years. The economy seems to be unstable and the question arises, why is capitalism so dynamic and unstable? In the novel “The Rise and fall of Neoliberal Capitalism”, David M Kotz analyzes and answers the many

    Read More

  • Adam Smith and the Reasoning Behind his Thoughts on the Wealth of Nations

    1622 Words  | 4 Pages

    The power of reasoning allows limitless inquiry into the nature of all things. Adam Smith an “enlightened” thinker utilizes reasoning to examine the wealth of nations, but in acting on this reasoning is he forcing his own sentiments into his argument, or is the reasoning creating the sentiments? Smith offers an exposition for his vision of a laissez faire economy, that is, capitalism in the modern sense. In a wider scope, Smith's account reveals his views on the nature of the human condition, and not a single theme is surveyed without an observation being made upon human tendencies and decisions. Arguably, these observations are shaped by his own sentiments.

    Read More

  • Adam Smith's Moral Sentiments

    695 Words  | 2 Pages

    Adam Smith was one of the most inspirational economists back in the 18th century and now. Adam Smith’s date of birth was never known but he was baptized on the date of June 5th, 1723 in his hometown of Kirkcaldy, Scotland. Unfortunately, Adam Smith’s Dad passed away prior to his birth in Scotland. When Adam Smith was at the age of three, he was abducted by some gypsies in front of his house when he was playing. However, John Smith was left alive in a forest by a few gypsies. Twelve years later, Adam Smith had enrolled in Glasgow University with a scholarship taking the major of Moral Philosophy. After Adam Smith was in Glasgow University, he later enrolled in a college in Oxford named Balliol College but later went back to Glasgow University as a professor in 1751. Adam Smith’s major that he taught in Glasgow University was logic. In 1752, Adam Smith later received the position of being the chair of his major of Moral Philosophy.

    Read More

  • Self-Interest In Adam Smith's The Economic Lowdown

    358 Words  | 1 Pages

    Why do you go to school? Why do you want to get good grades? Why do you want to have a good work? There are a lot of reasons, but it seems that the most accurate is because you are self-interested. (source) Being self-interested indicates that you care of your own personal achievements. In words of Adam Smith in his book “The Economic Lowdown”: “It is not from the benevolence (kindness) of the butcher, the brewer, or the baker that we expect our dinner but from their regard to their own interest.” In other words, why does the baker makes bread? The most straight forward answer is because of self-interest. The baker wants to get enough money to feed his family, to pay the rent, and most probably to get car and the easiest way for him to get this money is to bake bread for everybody.

    Read More

  • There Will Come Soft Rains, by Ray Bradbury

    953 Words  | 2 Pages

    are the creators of these marvelous innovations, and that soon, they will be the ones to lead

    Read More

  • Fallacies And Fallacy Of Capitalism In Das Kapital By Karl Marx

    1962 Words  | 4 Pages

    Therefore, production is not done with a view to fulfil the needs of the society, but to maximise gains and personal wealth. Not considering societal capacity to absorb product, the capitalist maximises productive forces, but is unable to realise the surplus value, that is, inability to sell the product. Therefore, capitalism is increasingly prone to crises due to disproportionality between supply and demand and overproduction of commodities. Marx expected there to be cyclical slumps in business every 10 years, earlier if the rate of capital accumulation is

    Read More

  • Adam Smith's Wealth of Nations

    3049 Words  | 7 Pages

    The pivotal second chapter of Adam Smith's Wealth of Nations, "Of the Principle which gives occasion to the Division of Labour," opens with the oft-cited claim that the foundation of modern political economy is the human "propensity to truck, barter, and exchange one thing for another."1 This formulation plays both an analytical and normative role. It offers an anthropological microfoundation for Smith's understanding of how modern commercial societies function as social organizations, which, in turn, provide a venue for the expression and operation of these human proclivities. Together with the equally famous concept of the invisible hand, this sentence defines the central axis of a new science of political economy designed to come to terms with the emergence of a novel object of investigation: economic production and exchange as a distinct, separate, independent sphere of human action. Moreover, it is this domain, the source of wealth, which had become the main organizational principle of modern societies, displacing the once-ascendant positions of theology, morality, and political philosophy.

    Read More

  • A Satisfactory Moral Theory

    919 Words  | 2 Pages

    James Rachels expresses his thoughts on what a satisfactory moral theory would be like. Rachels says a “satisfactory theory would be realistic about where human beings fit in the grand scheme of things” (Rachels, 173). Even though there is an existing theory on how humans came into this world there is not enough evidence to prove the theory to be correct. In addition to his belief of knowing how our existence came into play, he also has a view on the way we treat people and the consequences of our actions. My idea of a satisfactory moral theory would be treating people the way we wish to be treated, thinking of what results from our doings, as well as living according to the best plan.

    Read More

  • The Pros And Cons Of Adam Smith's Contribution To The Formation Of Capitalism?

    1246 Words  | 3 Pages

    “Adam Smith emphasized that private property rights, freedom of choice and competition are necessary and fundamental elements of pure capitalism. Smith’s greatest contribution to the formation of capitalism is his articulation of what he termed ‘the invisible hand’” (“BB&T program on capitalism, markets and morality, Bryan School of business, UNCG,” n.d.). The ‘invisible hand’ depicts how the best result for society comes from the quest for self-interest. By employing the opportunity to seek after what you believe is best for you and your family, you are accidentally aiding society. This can be held true for firms and consumers alike. A perfect example is when oil is hard to come by, rising gas costs causes people to abstain from driving and save gas. In the meantime, suppliers are roused to discover different connections of oil in light of the fact that the higher costs mean it is more financially rewarding. Every element is guided by this the ‘invisible hand’ to participate in activities that benefit all of society. However, the inspiration for these activities can be argued that it is

    Read More

  • Adam Smith’s contribution to capitalism

    2768 Words  | 6 Pages

    Adam Smith is considered as one of the most influential economists in the 18th century. Although his theories have been criticized by several socialist economists, however, his idea of capitalism still has great impact to the rest of the economists during classical, neo classical periods and the structure of today’s economy. Even the former Prime Minister of Britain, Margaret Thatcher had praised on Smith’s contribution on today’s capitalism market. She commented “Adam Smith, in fact, heralded the end of the strait-jacket of feudalism and released all the innate energy of private initiative and enterprise which enable wealth to be created on a scale never before contemplated” (Copley and Sutherland 1995, 2). Smith is also being recognized as the father of classical political economy and he has two famous published works that laid out the reasons to support his ultimate idea of capitalism.

    Read More

  • Capitalism: Good or Evil?

    1868 Words  | 4 Pages

    Capitalism is currently one of the two major economic systems that are being operated among the world. For my interpretation, its basics are privatization and individualism. That is, capitals are privately owned, profit of production is also privatized, and the society exists more on the basis of individuals than of groups. From an economic aspect, we undoubtedly acknowledge that capitalism is making great progress and wealth. As an example, the most powerful country in our time, the United States is a typical capitalist country. Yet, we also cannot deny that this system is causing problems and they are gradually getting widely concerned. Therefore, this controversial issue is often brought into public focus. The question is, is capitalism actually good to keep or it is evil to be replaced?

    Read More

  • Essay On The Principle Of Morality

    1144 Words  | 3 Pages

    J.S. Mill’s principle of utility is explained as actions are right as they tend to gain happiness, and wrong as they tend to reduce happiness. Mill defines happiness as, “pleasure and the absence of happiness is pain.” He argues that pleasure can differ in quality and quantity, and that more complex pleasures are ranked higher. Mills also places people’s achievements of goals, such as a virtuous living, should be counted as part of their happiness. When Mill states that the principle of utility is the “First Principle” of morality he is ranking the principle of utility highest because that in order to know what the boundaries of morality are, it is necessary to know how actions should be accounted. The first principle dictates the rest of the principles of morality because it illuminates what the right thing to do is, and that is to maximize happiness. Happiness is the goal of morality, and this is why Mill believes that morality must have a first principle.

    Read More

  • Adam Smith’s The Wealth of Nations - The Natural Order is Driven by Man’s Self-interest

    854 Words  | 2 Pages

    Adam Smith’s The Wealth of Nations - The Natural Order is Driven by Man’s Self-interest

    Read More

  • Invention, Innovation, and Interdependence

    1665 Words  | 4 Pages

    Scientific and technological progress is one of the most important and far reaching of humanity’s effort streams throughout history. One of the hallmarks of any great society is what new or improved knowledge of the world and how it works that the society can contribute. A strong and vibrant culture celebrates the spirit of invention and innovation. Closely allied with this concept is the spirit of entrepreneurship, considered one of the greatest qualities of the American culture.

    Read More

More about Theory of Moral Sentimen: Adam Smith

Open Document