Adam Smith built the foundational theory for Free Markets, recognizing that as humans we have and innate sense of self-interest (Wealth of Nations) and an innate sense of collaborative interests (Theory of Moral Sentiments)

    • Moral sentiments provides the base for economics and politics
    • Our real wealth comes from what we produce and how we produce it


Adam Smith believed that our mature human nature is to be caring and responsible and to serve the greater interest of the community

Adam Smith remarked that profits are highest in a nation going fastest to ruin

    • Economics must be integrated with moral thought
    • Smith was primarily concerned with morality and was extremely critical of concentration of enterprise and business practices
    • "corporate spirit" - greedy, untrustworthy, unbalanced between self and collective interests
    • Conduct of concentrated corporation cause the destruction of prudence in society
    • Better moral critics and better moral actors


  1. Imagination: Imagine yourself in someone elses shoes
  2. Morality: What's GOOD and BAD
  3. Environments: Societies environments

Market framework



Adam Smith understood that the "American Dream" would be reached through a vast array of smaller players that would create an equalibrium via the "hidden hand" of the market

Smith was against corporate concentration and their controlling hand of the market

The active proponents of trade and finance deregulation believe that they are creating a "free market."

In actual fact, what we have today is almost as far from a free market as you could get, with regulations and subsidies continually furthering the expansion of multinational corporations to the detriment of local businesses and the communities they support


Equating wealth with happiness is a perversion of the imagination - financial wealth drives progress, but not happiness

We are happy when

1. Economic stability (well-being)

2. Moral stability (Prudence > Greed) - man wants to be loved and be lovely




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