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century, and is regarded as the person who laid foundation for modern economics
(Robertson, 1984: 135). He is the person who many economists believe as the
his first book “The Theory of Moral Sentiments”. This essay is to analyze people’s
In his work Theory of Moral Sentiments, Smith firstly examines people’s behaviors
and reactions to others’ issues in society. He believes that people naturally tend to
be more compassionate with the needs and misery of others (Andrewes, 2009: 5).
Despite the selfishness, there are apparently some principles in one’s nature, which
engage his concern of others’ prospective, and “make their happiness necessary to
him” although he does not expect anything from it, “except the pleasure of seeing
it” (Smith Moral. Sent. Ex. 1). It can be explained that even this kind of sentiment is
“pity or compassion” (Smith Moral. Sent. Ex. 1), the emotional sense of humanity is
true and it exists inside every individual, affecting their behaviors and reactions. In
the one hand, sympathy is considered as “a selfish principle” because when a man
sympathizes with the others, he really does bring their cases into his own physical
and emotional feelings, and imagine how to behave in specific circumstances. In the
other hand, it can be argued that although imagination helps him to increase his
sympathetic degree, it can not always transform him into their particular cases
(Smith Moral. Sent. Ex. 7). An illustration for this is that when a man shares the
happiness and the pain with his wife giving birth to a child, he can obviously sense
it but “it is impossible that he should imagine himself as suffering her pains in his
own proper person and characteristic” (Smith Moral. Sent. Ex. 7). It may be
need of each other’s assistance” (Smith Moral. Sent. Ex. 3), and hence, naturally
friendship, love, gratitude and also from the development and happiness in society
Understanding that individuals are closely and inherently connected to each other in
society, Adam Smith highlights the importance role of self-interest in each person
which has significantly direct effect on social prospect. It has been claimed that self-
interest is the greed and original passion inside of each person that motivate people
to pursue their own aim and advantage without considering the consequences.
ego” (Fitzgibbons, 1995: 137) and relieve with “a degree of virtue” (Fitzgibbons,
1995: 138). In The Theory of Moral Sentiments, he explains that self-interest exists
in every individual’s mind and people are inclined to care much about whatever
relates to themselves than whatever other men involved in (Smith Moral. Sent. Ex.
11). This idea was once mentioned by Stoic philosopher Zeno that “every animal
was by nature recommended to its own care, and was endowed with the principle of
self-love” (Fitzgibbons, 1995: 138). Thus, the point is that what makes people
“sacrifice their own interests to the greater interests of others?” (Smith Moral. Sent.
Ex. 11). This question leads to the idea of justice in Smith’s moral theory, which is
Moral. Sent. Ex. 11). Smith believes that “only by the eye of this impartial
spectator”, people can restrain the greed and selfishness in their self-interests and
better themselves (Smith Moral. Sent. Ex. 11). This ideal impartial spectator is the
one “remind[ing] people that they were one of many, no different and no better
than the others” (Elgar, 1997: 162-163). Everyone is a cell of society and every
individual has to control their selfish, enhance their altruistic influence and
complete the perfection of human nature in order to build a harmonious, happy and
prosperous social life. It is clear that Smith considers neither self-interest nor
which is expected to minimize self-love and place “a formal role to higher values
In his famous book Wealth of Nations, Smith further interprets the influence of self-
nation. According to Smith, as said above, human beings are innately self-interested
and it is not selfish that ignoring the needs or taking advantages of others without
Smith’s system just to guarantees both sellers and consumers are beneficial in a
voluntary acceptance.(Sharpe: 27). Smith has demonstrated that there are more
chances for a man to get help if he can show them he is in favor with their self-
interest and it is their benefits to do so not his. As it is said that “give me that which
I want, and you shall have this which you want” is purely based on the
characteristics of self-interest existing inside everyone (Smith W. Nat. Ex. 3). There
is a famous quote of this idea in Smith’s work: “It is not from the benevolence of the
butcher, the brewer, or the baker, that we expect our dinner, but from their concern
for their own interest. We address ourselves, not to their humanity, but to their self-
love, and never talk to them of our own necessities but for their advantages” (Smith
W. Nat. Ex. 3). What Smith trying to address here is that helping people is the only
and the best way to help yourself. This makes no differences to one’s business that
the most profits can be earned when it meets the demands of the consumers. And
thus, self-interest is now defined as cooperation between each individual, it can not
needs. It does a key part in society since it contributes every single person to one
The ideas of “invisible hand” and “natural liberty” in Smith’s works have a great
contribution to economics growth and nation development. Smith believes that due
to his self-interest, every individual firstly will follow “the whole basis of his
subsistence” (Smith W. Nat. Ex. 3), which can assure him to be alive and able to
work efficiently; then he continues to put a special effort to search for the most
beneficial use of whatever wealthiness he can manipulate. (Smith W. Nat. Ex. 4). It
is merely his own advantages that he considers not that of social profits. However,
as Smith explains, whenever they follow their self-interest and invest their wealth
into a specific industry, they will probably want to earn profit for themselves, which
indirectly gain the wealth of that country. (Smith W. Nat. Ex. 6). This is how
“invisible hand” works. Smith conceives that only the people who are in their
specific local situations are the best judgers in economics investment since they are
investing their wealth and they are the people who clearly acknowledge how safe
and potential their businesses are in the future (Smith W. Nat. Ex. 7). Accordingly,
other words. This concept, to Smith, does not mean to “relieve the individual of
moral responsibility in his daily pursuit of material wealth” (Young, 1997: 173) as
the result of self-interest said above, “liberty” can not be considered as completely
“freedom” from everything, but freedom to restrain one’s passion and from explore
one’s idea of his ideal business (Muller, 1995: 2). Based on Smith’s doctrine, Sharpe
(2007: 29) states that “Smith accepted these [selfishness and greed] as human
frailties, and he contended that these base motives cannot be outlawed… they
incentives”. This argument shows that it is not that Smith denies all the role of
to remain the justice, public good to society and defend the country from invasion.
the society. Smith believes that self-interest creates the incentives of people in
“self-control”, the ability to prevent satisfaction and the inclination to realize others’
needs through their actions. Moreover, while trading, it is believed that self-interest
Smith’s moral theory. However, Smith argues that “competition was absolutely
therefore, motivating each individual in social life to enhance not only their wealth