Transcript Theory of Moral Sentiments

Adam Smith: An Overview
of his Work and Vision
by Daniel Klein
[email protected]
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"Here are deposited the remains
of ADAM SMITH.
Author of the
Theory of Moral Sentiments
and
Wealth of Nations:
He was born 5th June, 1723,
and died 17th July, 1790."
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A letter from 1790
Smith “always considered his
Theory of Moral Sentiments as a
much superior work to his Wealth
of Nations”
.
(Romilly 1840, I, 404)
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The Theory of Moral Sentiments,
or An Essay towards an Analysis
of the Principles by which Men
naturally judge concerning the
Conduct and Character, first of
their Neighbours, and afterwards
of themselves
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Adam Smith’s Project:
A science of man?
or
A culture of liberty?
A liberal civilization?
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At first glance, TMS does not seem to be
about politics.
I believe it is deeply liberal/libertarian.
The key ideas of TMS impart a message of
liberty, voluntarism, and the
degovernmentalization of social affairs.
TMS offers the broader ethical umbrella under
which WN resides.
WN is an extension of TMS.
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Let’s peak inside TMS:
The social ecology of sympathy
“those we live with”
The impartial spectator
Emphasis on active moral agency
Universal benevolence and limited
knowledge
Justice
A society of equals
A spontaneous order of correction
The four sources of moral approval
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The amiable virtues and the
respectable virtues:
The social ecology of sympathy
Hayek is closer to Smith than to
Mises.
I am critical of images of science
associated with Mises, Rothbard,
and Kirzner.
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“those we live with”
“What reward is most proper for promoting
the practice of truth, justice, and
humanity? The confidence, the esteem,
and love of those we live with. Humanity
does not desire to be great, but to be
beloved. It is not in being rich that truth
and justice would rejoice, but in being
trusted and believed, recompenses which
those virtues must almost always
acquire.” (166)
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The impartial spectator and
the man within the breast
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Active moral agency awakens our
humanity and exercises our virtue
The earthquake and your pinky.
1st thought experiment: Passive
sentiment
2nd thought experiment: Active moral
agency
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Universal benevolence and the limits
of knowledge
Smith suggested that ideal virtue entails a
kind of universal benevolence.
“[H]owever, the care of the universal happiness of all
rational and sensible beings, is the business of God
and not of man. To man is allotted a much humbler
department, but one much more suitable to the
weakness of his powers, and to the narrowness of his
comprehension; the care of his own happiness, of that
of his family, his friends, his country: that he is
occupied in contemplating the more sublime, can never
be an excuse for his neglecting the more humble
department”.
(237)
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Commutative justice
“The most sacred laws of justice,
therefore, those whose violation seems to
call loudest for vengeance and
punishment, are the laws which guard the
life and person of our neighbour; the next
are those which guard his property and
possessions; and last of all come those
which guard what are called his personal
rights, or what is due to him from the
promises of others.” (84)
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Commutative justice as social
grammar
Commutative justice: “abstaining
from what is another’s”
Distributive justice: “the becoming
use of what is our own” (269-70)
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A society of equals
Smith noted that his reverence for
commutative justice was “among
equals.”
But the book shows that he wanted
the equal-equal relationship to
prevail. He wanted to minimize the
superior-inferior relationship.
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An invisible hand in morals
Has the upper-hand in the “middling and
inferior stations”
But not in the “superior stations” – or
political society
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A spontaneous order of correction
“The great pleasure of conversation and
society, besides, arises from a certain
correspondence of sentiments and
opinions, from a certain harmony of
minds, which like so many musical
instruments coincide and keep time with
one another. But this most delightful
harmony cannot be obtained unless there
is a free communication of sentiments and
opinions.” (337)
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The four sources of moral approval
Jim takes an action that affects Mary:
1st source: our regard for Jim’s motives and
intentions
2nd source: our regard for Mary’s sentiments
3rd source: our regard for whether the
interaction conforms to rules and
expectations suitable to the
circumstances.
4th source: …
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The fourth sources of moral approval
4th source:
“and,
last of all, when we consider
such actions as making a part of a
system of behaviour which tends
to promote the happiness either of
the individual or of the society,
they appear to derive a beauty
from this utility, not unlike that
which we ascribe to any wellcontrived machine.” (326)
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Instruction at the 4th source:
The Wealth of Nations
The Wealth of Nations is Smith’s moral
authorization for:
the pursuit of honest profit
a presumption of liberty in politics and
policymaking
TMS provides the ethical framework for
WN. It is from universal benevolence that
we morally authorize the pursuit of honest
profit.
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The invisible hand
The comparative merit of a system of
decision-making that respects
commutative justice, “abstaining from
what is another’s,” and that is likewise
respected by others, including by the
government—that is, a system of
decision-making that is decentralized or
free.
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Not axiomatic:
Smith allowed of exceptions
Smith’s commitment to the liberty principle
was not absolute or airtight.
He allowed of exceptions.
Interventions he condoned:
usury restrictions
certain banking restrictions
mild support for partial tax financing for
elementary schooling
about 10 others are also debated
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The system of natural liberty
“All systems either of preference or of restraint, therefore, being thus
completely taken away, the obvious and simple system of natural
liberty establishes itself of its own accord. Every man, as long as he
does not violate the laws of justice, is left perfectly free to pursue his
own interest his own way, and to bring both his industry and capital
into competition with those of any other man, or order of men. The
sovereign is completely discharged from a duty, in the attempting to
perform which he must always be exposed to innumerable delusions,
and for the proper performance of which no human wisdom or
knowledge could ever be sufficient; the duty of superintending the
industry of private people, and of directing it towards the
employments most suitable to the interest of the society. According
to the system of natural liberty, the sovereign has only three duties to
attend to; three duties of great importance, indeed, but plain and
intelligible to common understandings: first, the duty of protecting the
society from violence and invasion of other independent societies;
secondly, the duty of protecting, as far as possible, every member of
the society from the injustice or oppression of every other member of
it, or the duty of establishing an exact administration of justice; and,
thirdly, the duty of erecting and maintaining certain public works and
certain public institutions which it can never be for the interest of any
individual, or small number of individuals, to erect and maintain;
because the profit could never repay the expence to any individual or
small number of individuals, though it may frequently do much more
than repay it to a great society.” (WN 687-8)
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The end
Thank you for your attention.
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