It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages. [1]
Basically the idea is that in a free-market democratic capitalist society everyone acts purely in pursuit of their own material interests and by some kind of magic this will lead to the best possible outcome for everyone.
It appears that people who are embarrassed by this naked attempt to legitimize morally empty egoism point to other aspects of Adam Smith’s writings where he talks about justice and so on. To be honest; I don’t know. I’ve never read Adam Smith. What I do know is that in classical economics this principle is taken as axiomatic. This principle really is the bedrock of classical economics; the kind which governs Western societies. True; there is an acknowledgement that ‘demand’ represents purchasing power and not need but once acknowledged the whole edifcase is in fact built around Adam Smith’s principle. Everyone is presumed to act in their material self-interest at all times. This is seen as normal. From another point of view it is not normal at all and what is happening here is that it is being normalised. Continue reading “Adam Smith and Coronavirus”
