„How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it” is the first sentence of Adam Smith’s Theory of Moral Sentiments. Despite Smith’s repeated emphasis on the importance of sympathy as a fundamental characteristic of human nature, Smith is often only associated with the idea that individuals are driven solely by their self-interest. The reason for this association is that self-interest seems to be the dominant motivator for human behaviour in Smith’s book The Wealth of Nations. As a result, Smith’s idea of man is often seen as a first draft of the self-interested homo oeconomicus used in modern economic analysis.
This paper will explain Smith’s much more comprehensive view of human nature, analyse how the ethics and moral aspects of the TMS and the self-interest of the WN fit together and compare Smith’s idea of man to the concept of the homo oeconomicus in modern economics.
Table of Contents
1. The modern homo oeconomicus and Adam Smith’s idea of man
2. Self-interest and sympathy in the work of Adam Smith
3. The interaction between Smith’s human characteristics
4. Concluding remarks concerning Smith’s ideas and the homo oeconomicus
Objectives and Core Themes
This paper examines the extent to which Adam Smith’s complex understanding of human nature aligns with or contradicts the modern economic model of the homo oeconomicus. It aims to clarify the perceived "Adam-Smith-Problem" by analyzing the complementary relationship between self-interest and sympathy within Smith's major works, ultimately arguing that Smith’s anthropology is significantly broader than the rational-choice paradigm.
- Comparison of Smith's "Theory of Moral Sentiments" and "The Wealth of Nations"
- Critique of the modern homo oeconomicus model in economic analysis
- The role of sympathy as a fundamental element of human behavior
- The interaction between moral constraints and self-interested action
- The limitations of utility-maximizing frameworks in capturing human sentiment
Excerpt from the Book
1. The modern homo oeconomicus and Adam Smith’s idea of man
„How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it” is the first sentence of Adam Smith’s Theory of Moral Sentiments (TMS) (Smith, 1976 [1759], p.9). Despite Smith’s repeated emphasis on the importance of sympathy as a fundamental characteristic of human nature, Smith is often only associated with the idea that individuals are driven solely by their self-interest. The reason for this association is that self-interest seems to be the dominant motivator for human behaviour in Smith’s book The Wealth of Nations (WN). As a result, Smith’s idea of man is often seen as a first draft of the self-interested homo oeconomicus used in modern economic analysis. In the following, I will explain Smith’s much more comprehensive view of human nature, analyse how the ethics and moral aspects of the TMS and the self-interest of the WN fit together and compare Smith’s idea of man to the concept of the homo oeconomicus in modern economics.
Before taking a closer look at Adam Smith’s two major writings, I will outline the basic assumptions of the homo oeconomicus model in present-day economics. The homo oeconomicus is used to analyse how individuals make decisions (cf. Kirchgässner, 2000, p.13). The principal premise of the human behaviour concept is that the homo oeconomicus acts rationally and pursues his self-interest (cf. Gabler Wirtschaftslexikon; Kirchgässner, 2000, p.13ff./46ff.). The behaviour of the homo oeconomicus is analysed in situations of scarcity, i.e. in situations in which the individual cannot fulfil all needs simultaneously (cf. Horn, 1996, p.24 ff.; Rolle, 2005, p.198 ff.). In these situations, it is assumed that the homo oeconomicus maximizes his utility by acting according to his preferences.
Summary of Chapters
1. The modern homo oeconomicus and Adam Smith’s idea of man: This chapter contrasts the contemporary homo oeconomicus model with Adam Smith’s broader view of human nature, highlighting the common but often reductive perception of Smith's work.
2. Self-interest and sympathy in the work of Adam Smith: This section explores the interplay between the two central themes of self-interest and sympathy, arguing that they are complementary rather than contradictory aspects of Smith's anthropology.
3. The interaction between Smith’s human characteristics: This chapter details how sympathy serves as a prerequisite for moral judgments and acts as a constraint on the pursuit of self-interest, contradicting the narrow utility-maximization view.
4. Concluding remarks concerning Smith’s ideas and the homo oeconomicus: The final chapter concludes that the homo oeconomicus model is insufficient to capture the breadth of Smith's view, as moral preferences cannot simply be integrated into a utility function without losing the core of Smith’s philosophy.
Keywords
Adam Smith, homo oeconomicus, self-interest, sympathy, Theory of Moral Sentiments, Wealth of Nations, human nature, utility maximization, moral philosophy, economic anthropology, rational choice, benevolence, justice, Adam-Smith-Problem, economic behavior.
Frequently Asked Questions
What is the central focus of this publication?
The paper examines whether Adam Smith's concept of man, as depicted in his writings, aligns with the modern economic model of the rational, self-interested homo oeconomicus.
What are the primary themes discussed in this work?
The core themes include the role of self-interest and sympathy, the interpretation of Smith's two major works, and the philosophical critique of modern economic assumptions about human behavior.
What is the main research question or objective?
The objective is to determine if Smith’s ideas can be reconciled with the homo oeconomicus model or if his view of human sentiment is fundamentally broader and more complex than modern economic theory suggests.
Which scientific method is utilized in this study?
The work employs a literature-based conceptual analysis, contrasting secondary economic research with primary texts from Adam Smith to resolve the perceived "Adam-Smith-Problem."
What is the scope of the main chapters?
The main sections cover the definition of the modern homo oeconomicus, the role of sympathy in Smith's anthropology, the interaction between human characteristics like justice and benevolence, and a final critique of current economic interpretations of Smith.
Which keywords best describe the paper?
The key concepts include Adam Smith, homo oeconomicus, self-interest, sympathy, moral sentiments, and utility maximization.
What is the "Adam-Smith-Problem" mentioned in the text?
It refers to the long-standing debate in scientific literature regarding an alleged contradiction between the moral-oriented "Theory of Moral Sentiments" and the self-interest-oriented "Wealth of Nations."
Why does the author argue that sympathy is essential?
The author argues that sympathy distinguishes Smith’s anthropology from the homo oeconomicus because it represents an innate human capacity to feel for others, which goes beyond mere rational calculation.
Does the author believe that a "widened" homo oeconomicus model is sufficient?
No, the author concludes that even if moral preferences are integrated into a utility function, it does not truly capture Smith’s view, as such a model still assumes individuals only act morally to maximize their own personal utility.
- Citation du texte
- Harald Weiler (Auteur), 2017, Adam Smith’s View of Human Sentiment and Conduct, Munich, GRIN Verlag, https://www.grin.com/document/414455
