Adam Smith

Scottish philosopher and economist (1723–1790), a central figure of the Scottish Enlightenment, professor of moral philosophy at the University of Glasgow and close friend of David Hume, with whom he shared the broader project of a science of human nature. His first major work, The Theory of Moral Sentiments (1759), preceded his better-known work by almost two decades and laid the foundations of his philosophy: it argues that moral judgement arises from the human capacity for empathy, or 'sympathy', and from the figure of the 'impartial spectator' — an internalised voice that allows us to judge our own actions as a fair observer would — an ethical framework many scholars consider essential for correctly understanding his later economic thought, often misread as advocating unchecked self-interest. The Wealth of Nations (1776) established him as the founder of modern political economy: it analyses how the division of labour dramatically increases productivity, introduces the famous metaphor of the 'invisible hand', whereby the pursuit of individual self-interest within a freely competitive market can generate collective benefits without direct intention, and formulates a systematic critique of mercantilism, advocating instead free trade, the limitation of monopolies, and a reduced but necessary role for the state in education, justice and defence. Sceptical of the excesses of both concentrated mercantile power and arbitrary state intervention, Smith continues to be invoked, often with conflicting interpretations, both by advocates of economic liberalism and by those who stress his often-overlooked ethical and social dimension.

4 works

• An Inquiry into the Nature and Causes of the Wealth of Nations
• Lectures on Justice, Police, Revenue and Arms
• The Essays of Adam Smith
• The Theory of Moral Sentiments