Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics. The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit. It emphasizes the division of labor, the accumulation of capital, and the importance of free markets. Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces. The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.
Glory Liu's book 'Adam Smith's America' delves into the evolution of Adam Smith's influence in the United States, tracing how his ideas were reinterpreted and weaponized over time. It highlights how Smith became a symbol of free markets and capitalism, despite his original work encompassing broader moral and economic philosophies. The book explores the transformation of Smith's image from a moral philosopher to a champion of self-interest, particularly through the lens of the Chicago School of Economics.
Published in 1759, 'The Theory of Moral Sentiments' is Adam Smith's first major published work, based on his lectures at Glasgow University. The book argues that morality is driven by humanity's natural sociability and the need for approval from peers, rather than by rational calculation or innate moral sense. Smith introduces key concepts such as sympathy, the impartial spectator, and the invisible hand, which explain how individuals judge the conduct and character of themselves and others. The work delves into the emotional and social aspects of human behavior, highlighting the role of emotions like pity and compassion in shaping moral sentiments and behaviors[1][3][4].
In this book, Milton and Rose Friedman argue that free-market principles are more effective than government intervention in achieving economic prosperity and personal freedom. They critique the explosion of laws, regulations, agencies, and spending in Washington, highlighting how these have eroded freedom and undermined affluence. The book provides examples of how free markets have succeeded in various historical contexts, such as Hong Kong and the United States before the Great Depression, and contrasts these with the failures of centralized planning in countries like India. The authors also propose remedies for various economic and social issues, including education, inflation, and consumer protection, advocating for a minimalist economic policy and greater personal freedom[1][2][5].
Nicholas Phillipson's biography provides a nuanced understanding of Adam Smith's life and thought, highlighting his role in the Scottish Enlightenment and the development of modern economics. Despite the challenges posed by Smith's private nature and the destruction of his personal papers, Phillipson offers a vivid portrayal of Smith's intellectual journey and his relationships with influential figures like David Hume.
Adam Smith's 'Lectures on Jurisprudence', originally delivered at the University of Glasgow in 1762–1763, outline his theory of the rules by which civil governments should be directed. The lectures focus on justice, police, revenue, and arms, providing foundational ideas that later influenced 'The Wealth of Nations'. Smith argues that the primary purpose of government is to maintain justice and protect individual rights, while also promoting public prosperity through appropriate regulations.
Sean Illing talks with Glory Liu, the author of Adam Smith’s America: How a Scottish Philosopher became an Icon of American Capitalism. Smith is most well-known for being the “father of capitalism,” but as Liu points out in her book, his legacy has been misappropriated — especially in America. They discuss his original intentions and what we can take away from his work today.
Host: Sean Illing (@seanilling), host, The Gray Area
Guest: Glory Liu (@miss_glory), author; lecturer, Harvard University
References:
Works by Adam Smith:
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The Gray Area with Sean Illing 
