Question

Given the historical context of Smith's time, what might have made his writing controversial? Give an example of how his theories are still debatable today.

Answer 1

Adam Smith (1723 – 1790) was a Scottish economist. He was deeply critical of Christianity because of his own observation of hypocrisy within Protestantism.

In 1759, Smith published The Theory of Moral Sentiments, which established Smith’s reputation in his own days, is concerned with the explanation of moral approval and disapproval. He based his explanation on sympathy as a fundamental human motive.

In 1776, he published The Wealth of Nations that became the foundation of modern economics.

There has been considerable controversy as how far there is contradiction between Smith’s emphasis on sympathy in his Theory of Moral Sentiments and the key role of self- interest in The Wealth of Nations.  

Smith’s idea of letting an economy without government intervention, called today Laissez faire was not about the government granting special economic privileges to powerful manufacturers and merchants. Mercantile monopolists and their allies in Parliament today, are the great enemies of Smith’s “free market mechanism”.