Wealth of Nations and Moral Sentiments

Today we bring you a very interesting talk comparing and contrasting Adam Smith’s “Wealth of Nations” and “Theory of Moral Sentiments” from econtalk. Click here for the audio.

Description of the Talk

“James Otteson of Yeshiva University talks with EconTalk host Russ Roberts about Adam Smith. The conversation begins with a brief sketch of David Hume and his influence on Smith and then turns to the so-called Adam Smith problem — the author of The Wealth of Nations appears to have a different take on human nature than the author of The Theory of Moral Sentiments. Smith worked on both books throughout his life, yet their perspectives seem so different. Otteson argues that the books focus on social behavior and the institutions that sustain that behavior — market transactions in The Wealth of Nations and moral behavior inThe Theory of Moral Sentiments. Both books use the idea of emergent order to explain the evolution of both kinds of social behavior and social institutions. The conversation concludes with a discussion of what Smith got right and wrong.”