The role of self-interest in Adam Smith's wealth of nations

Patricia Werhane

pp. 271-280

in: David Bevan, Regina W. Wolfe (eds), Systems thinking and moral imagination, Berlin, Springer, 2019

Abstract

Werhane challenges the arguments of leading economists, including Milton Friedman, that Smith extols the virtue of self-interest above other virtues, especially in the marketplace. Werhane is careful to explain that for Smith self-interest is a complex notion referring variously to (a) the object of a person's interests which may be interests in others, in sports, in history, etc. and (b) a person's interests in herself as the object of her interests. Moreover, this complex self-interest is by no means invariably a vice such as greed or avarice; a self-interested person could simply be someone who was not particularly interested in others without any necessity to consider harming them. In a marketplace setting, or at least in contexts wherein free exchanges may take place, a position that Smith clearly defends against overregulation and feudalism, each of us will be interested in our personal well-being. But Smith cautions that the market works, and works well, only if we (i) treat each other fairly, (ii) engage in fair competition, and (iii) avoid monopolies.Original publication: Werhane, Patricia H. "The Role of Self-Interest in Adam Smith's Wealth of Nations." Journal of Philosophy (1989) 86: 669–680. ©1989 Reprinted with permission.

Cited authors

Smith Adam

Friedman Milton