Happy Birthday, Adam Smith!

June 16, 1723, is the birth date of Adam Smith, a Scottish intellectual greatly admired for clarifying the virtuous, self-organizing nature of free markets. Smith noted that humans’ evolved self-interest trait encouraged people to seek wealth-creating exchanges. That was the key element of his famous work The Wealth of Nations. But Smith also realized that such exchanges require that each party have some knowledge of what the other party seeks and what it would view as a fair deal. And that realization led Smith, in his book The Theory of Moral Sentiments, to focus on another human trait, empathy. This is the social skill that we all possess to varying degrees to get inside the mind of the other, to understand what they value. This trait is equally critical if markets are to exist and wealth creation is to occur.
Self-interest encourages deal-making and empathy makes it more likely that such

Continue Reading....

Check Also

Dispelling Six Myths on Air Traffic Control Reform and Labor Relations

Facebook Twitter Google+ Pinterest LinkedIn Digg Del StumbleUpon E-mail Reddit Buffer Love ThisView Full Document …

Leave a Reply

Send this to friend