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Revisiting the "father of capitalism"

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Aug 19, 2024

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Glory Liu

Glory Liu, a Harvard lecturer and author of "Adam Smith’s America," dives deep into the legacy of Adam Smith, often mischaracterized as solely the father of capitalism. Liu reveals Smith's original intentions, emphasizing moral philosophy and the human-centered aspects of economics. Their discussion critiques the one-dimensional interpretations of Smith’s work, particularly the 'invisible hand,' illustrating how empathy intertwines with self-interest in economic behavior. Tune in for a rich exploration of how Smith's ideas apply to today's social and economic challenges.

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insights

INSIGHT

Smith's Wide-Ranging Work

Adam Smith, known as the "father of capitalism," was a nuanced thinker.
His work goes beyond free-market economics, encompassing moral philosophy and other fields.

insights

INSIGHT

Smith's Critique of Mercantilism

In Wealth of Nations, Smith challenged mercantilism, arguing that national wealth comes from labor.
He highlighted the division of labor and critiqued monopolies like the British East India Company.

insights

INSIGHT

Smith's Measure of National Wealth

Smith measured national wealth by the accessibility of basic necessities, not just monetary value.
A prosperous nation ensures even its poorest members can live without shame.

Get the Snipd Podcast app to discover more snips from this episode

Revisiting Adam Smith's Legacy

03:22 • 11min

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Philosophy and Capitalism: Unraveling Adam Smith's Insights

14:19 • 6min

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Sympathy and Capitalism: Unpacking Adam Smith's Legacy

20:41 • 16min

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Understanding the Invisible Hand

36:57 • 4min

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The Invisible Hand and Its Interpretations

41:07 • 10min

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The Complexity of Intellectual Discourse and Capitalism

51:30 • 2min

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How to Change

The Science of Getting from Where You Are to Where You Want to Be

Katy Milkman

In this ground-breaking book, Katy Milkman reveals a proven path to help readers move from where they are to where they want to be. Drawing on her original research and the work of her world-renowned scientific collaborators, Milkman shares strategic methods for identifying and overcoming common barriers to change, such as impulsivity, procrastination, and forgetfulness. The book offers innovative approaches like 'temptation bundling,' using timely reminders, and creating 'set-it-and-forget-it systems' to make change more achievable. It emphasizes the importance of tailoring solutions to specific roadblocks and using science to stack the deck in favor of successful change.

Adam Smith's America

How a Scottish Philosopher Became an Icon of American Capitalism

Glory Liu

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.

The Wealth of Nations

Adam Smith

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.

The theory of moral sentiments

Adam Smith

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.

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.

Adam Smith: an enlightened life

Nicholas Phillipson

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.

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:

Adam Smith’s America: How a Scottish Philosopher became an Icon of American Capitalism by Glory Liu (Princeton; 2022)
Adam Smith: An Enlightened Life by Nicholas Phillipson (Yale; 2012)
Free to Choose: A Personal Statement by Milton & Rose Friedman (Harcourt; 1980)
“Adam Smith’s ‘History of Astronomy’ and view of science” by Kwangsu Kim (Cambridge Journal of Economics v. 36; 2012)

Works by Adam Smith:

The Wealth of Nations (1776)
Theory of Moral Sentiments (1759)
Lectures on Jurisprudence (1763)

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