Adam Smith was a Scottish economist/philosopher
Q2)
Adam Smith was a Scottish economist/philosopher, famed for his Theory of moral sentiment, which holds that our social nature is the determinant of our moral compass and therefore making social psychology a better ethical guide than reason.
One outstanding critical aspect of Smith’s understanding is the impartial spectator, who, by observation of an array of our actions, molds how we perceive the intentions of our current and future activities. As long as one’s moral imagination attends to the impartial spectator, their judgment of actions will comply with an ethical standard founded on their experience. He defines the character of a person of virtue. They would bear the qualities of prudence, fairness, benevolence, and self-control. Prudence abates the individual’s extravagance and makes them empathetic to others, which is essential for social stability. Justice restrains us from harming others, thereby ensuring coexistence in society. Acts of mercy, charity, and kindness enhance social security by prompting us to promote the happiness of others. It is not an obligation to anyone, but it is appreciated. Self-control helps us manage our free will and refrain from self-sabotage.
He cites that we should not produce at home, which is cheaper to purchase. Every one of us, through the invisible hand, enjoys favorable allotment of resources in line with our self-interests. By doing what we are seamlessly good at, a system of exchange is created where specialized individuals exchange their products for what they need but can’t produce. He illustrates how, through the division of labor and hence specialization, humans can increase productivity and create long term careers. This enhances human creativity as we seek to fill demand gaps for certain products leading to economic progress. To enable this progress, Smith notes that there has to be free trade. The open business entails no government intervention in the market, its role being to provide a peaceful and just environment with tax rates that encourage trading. This would spur growth at an individual and societal level.
References
The Theory of Moral sentiments- Adam smith (e-text)
The condensed wealth of nations – Dr. Eamonn Butler