The Answer Is Transaction Costs Adam Smith's Wealth of Nations: Episode #2--The "Model"
Jul 29, 2025
Dive into Adam Smith's profound insights on human nature! Discover how he connects transaction costs to morality and social harmony. Explore the importance of self-command in transforming virtuous thoughts into actions. Unearth the complexities behind moral judgments through motives and societal expectations. Smith's views challenge hierarchical systems and highlight the welfare of commerce. His allegories, like the 'Chinese earthquake', provoke a fresh take on ethics and decision-making in societal contexts.
AI Snips
Chapters
Books
Transcript
Episode notes
Smith's Two Core Human Claims
- Adam Smith claims humans desire to learn proper behavior guided by others' reactions and have an innate propensity to exchange.
- These two claims together form the basis of his integrated system in his key works.
Smith's Sympathy Means Synchronizing Feelings
- Sympathy for Smith means synchronizing feelings with others, not perfectly matching emotions but creating social harmony.
- People adjust their feelings to create concordance needed for society's cohesion.
Justice as Society's Core Pillar
- Justice protects person, property, and promise and is central to social order.
- It is enforced by moral passions like anger, keeping society functioning without constant state intervention.
