PUBLISHED WORKS
The Theory of Moral Sentiments - Published in 1759
The Theory of Moral Sentiments argued that morality cannot be calculated. It is hidden in our social nature that we feel show care and concerns for other people. Through a lot of experiences and guidance to build up a system of behavioral rules is called morality. The book includes punishments and rewards, justice, conscience, moral rules, and virtues that drive people’s lives. Adam Smith suggests there are rules against immoral acts in our society called justice. We cannot force people to do good, but can only force people to obey those rules in order to let this society to survive. Nature has given us self-criticism, which is called conscience that reminds us of importance of other people. Through nature we obtain moral rules as moral standards to guide us. Adam Smith ended his book with the topic on people with virtues. Such people, he stated, would have the qualities of prudence, justice, beneficence, and self-command.
Reference: http://www.adamsmith.org/the-theory-of-moral-sentiments http://en.wikipedia.org/wiki/The_Theory_of_Moral_Sentiments
adam_smith.ppt |
Wealth of Nations - Published in 1776
In his book, Smith also underscored the idea of division of labor. In free markets, productivity and efficiency are determined by how much workers put into their labor. Instead of having all the workers work on the same tasks, Smith believed that a division of tasks and specialization of work increased productivity. Smith also mentioned his concern that governments under a free market must give the people as much freedom to seek their own production as possible because only when they are free, there will think of the best products to progress human society. He also coined the term Invisible Hand that means we all benefit from each other's self-interests.
Reference: http://www.humanities.mq.edu.au/Ockham/y6402.html
LEGACY on ECONOMICS
For example, in the United States, a free market is still in practice and individual companies are often driven by their self-interests. The company Google resembles much of a laissez faire government. Google's work environment is very free and casual. It has various entertainment and rest zones. Bosses do not pressure their workers or restrain them like a government can in a country. Like Smith's laissez-faire, workers at Google are able to use this freedom for creative innovations.
(These pictures show how Google's system is very similar to that of Adam Smith's laissez-faire government - free and motivated by self interest)