A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
Doubtless it is not the only one. Smith is never exclusive. He knew
that there were other passions[200] besides self-interest, and he is
not afraid of naming them, as when he attributes an economic revolution
which had such beneficial effects as the emancipation of the rural
classes to “the most childish vanity of proprietors.”[201] Neither did
he omit to point out that personal interest is not equally strong in the
breast of every one, and that there is the greatest diversity in human
motives. All this he had forgotten, according to some of his critics,
while others charge him with the creation of the _homo œconomicus_, a
poor representation of reality and a mere automaton exclusively guided by
material interests. Someone has remarked that if you add to this figure
a tinge of patriotism you have a faithful picture of the Englishman and
Scotsman of his day. Had he been acquainted with Germans or Frenchmen,
with their less sordid attachment to material gain, he might have judged
differently. It may be that our reading of him is incorrect. He seems
to have taken care to note that his remarks do not apply to _all_, but
only to the generality of men. He continually recalls the fact that he
is speaking of men of common understanding,[202] or of those gifted
with common prudence.[203] He knew well enough that the principles of
common prudence do not always govern the conduct of _every_ individual,
but he was of opinion that they always influenced that of the majority
of every class and order.[204] His reasoning is applicable to men _en
masse_, and not to individuals in particular. Moreover, he does not deny
that man may be unacquainted with or may even entirely ignore his own
interest. We have just quoted a passage wherein he remarks that bankers
who temporarily issue too many notes are at that moment ignorant of their
own interests.
These reservations notwithstanding, and full account being taken of all
the exceptions to the principle as laid down by Smith, it is still true
to say that as a general thesis he considers “the natural effort of every
individual to better his own condition”—that is, personal interest—as
the fundamental psychological motive in political economy. Any reference
to the case of business men who are really actuated by a desire to take
general welfare as their guide in matters of conduct is treated with a
measure of scepticism which it is difficult not to share. “I have never
known much good done by those who affected to trade for the public good.
It is an affectation, indeed, not very common among merchants, and
very few words need be employed in dissuading them from it.”[205] Not
that sentiment does not play a part, and a very important part, in the
philosophy of Smith; but sentiment, or sympathy, as he calls it, has
the domain of morality for its own, while interest dominates that of
economics. All his thinking led him to a firm belief in a spontaneous
economic order founded and guided by self-interest.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account