Adam Smith's Theory of Moral Sentiments and the Perception of Wealth

Adam Smith's perspective suggests that wealth does not equate to happiness; in fact, wealthier individuals may lead miserable lives but maintain a facade to preserve societal aspiration towards wealth. This perception is often held by those without wealth, who associate happiness and enjoyment with the affluent. Consequently, this mindset contributes to opposition against wealth and inheritance taxes, despite their irrelevance to most individuals. People fear losing their identification with wealth and the joy they believe comes with it, creating a barrier to support for more equitable wealth distribution. Overcoming this misconception is essential for social and economic reform movements.