The Theory of Moral Sentiments

The new edition has an introduction by Amartya Sen. Sen argues that the intellectual fate of The Theory of Moral Sentiment is a fascinating and troubling story. Originally received with acclaim, it was overshadowed by The Wealth of Nations. And, unfortunately, the connection between the two works by Smith was misunderstood. Sen argues that the consequence of this was not only that The Theory of Moral Sentiments was under-appreciated for the fields of ethics and philosophy, but that the interpretation of The Wealth of Nations was constrained and distorted to the detriment of economics. The neglect of the common framework between the two books resulted in a failure to appreciate the demands of rationality, the plurality of human motivations, the connection between ethics and economics, and the "co-dependent -- rather than free standing -- role of institutions in general and free markets in particular in the functioning of the economy."

Our readers should not be surprised by these claims from Sen, let alone disagree with them. Any reader of Vernon Smith's "Two Faces of Adam Smith"

Click here to read Vernon Smith's accessible view of Adam Smith.

Book Recommendation of the Year

Adam Smith's first book was intended to lay the foundation for a trilogy that was not completed. This book deals with the processes of individual ethical behavior and decision making, the Wealth of Nations examines societal decisions and his last, unwritten work, was to have dealt with jurisprudence. While this is a challenging book, it is well worth the effort - Econ Talk has a wonderful book club on this text that includes 6 excellent podcasts to clarify your reading.