How Adam Smith made capitalism morally acceptable
Explain how Adam Smith made capitalism morally acceptable.
Sample Solution
How Adam Smith made capitalism morally accepted
Adam Smith is often identified as the father of modern capitalism. Smith saw economics as a branch of moral philosophy, and he saw capitalism as an ethical project whose success required political commitment to justice and freedom, not merely an understanding of economic logistics. Smith’s defense of capitalism, or, in his terminology, commercial society, is unambiguous but qualified. He justified commercial society for its tremendous contribution to the prosperity, justice and freedom of its members, and most particularly for the poor and powerless in society. But he was no naive ideologue for free markets and profits. He criticized the political machinations and moral character of the very merchants and manufacturers who, he acknowledged, were driving economic development, and not only told them they should act better, but also argued for institutional measures to restrict their worst proclivities, particularly by getting government out of the business of economic micro-management.
