Adam Smith Lectures
Adam Smith Lectures - 1 - Frederick Weil February 1999
Adam Smith - Lecture 1 The Character of Market Society
Smith makes a number of claims about the “natural” state of things: “human nature,” “natural” prices or rates of wages, rent, and profit, “natural” character of the market and market society. In this lecture, I explore the picture of market society he gives, mainly in Book I of the Wealth of Nations. In this and the following lectures, we will see how Smith contradicts most of his basic assertions about the “naturalness” of these things.
Benefits of Market Society - Increase of productivity through division of labor (WN 13ff) - Affluence of all (WN 22) - Reduction of class differences (WN 24)
Assumptions
- Equality, but diversity (WN 28f). Accepts analysis of Hobbes; says differences arise in upbringing. Will have to ask, then, why different classes have different outlooks. Will answer, in part, due to material conditions (classes per se), and in part due to different values (esp comparing ruling groups).
- Self-interest; tendency to barter leads to harmony (WN 25f). Like Hobbes, does not argue from altruism, but also does not ascribe deadly competition here. Will have to ask later whether Smith sees this under all conditions or whether he wants this as a result of market society. I.e., is it really part of human nature, or does it stem from social conditions?
- NB: propensity to barter and division of labor are limited by extent of market (WN 31). Characteristics and inner dynamics (WN 44-8, 72f)
- “Natural” and market prices; value. - Higgling, entering and leaving market, supply and demand.
Adam Smith Lectures - 2 - Frederick Weil February 1999
Classes and class conflict - Component parts of price: wages, profits, rent. (WN 65f) - Principles which regulate each:
* supply of labor (WN 86, 85) * accumulation of capital (WN 73, 84f) * appropriation of land (WN 160, 67)
- Reasons for conflict of interests: question of subsistence of individual
Adam Smith - Lecture 1 The Character of Market Society
Smith makes a number of claims about the “natural” state of things: “human nature,” “natural” prices or rates of wages, rent, and profit, “natural” character of the market and market society. In this lecture, I explore the picture of market society he gives, mainly in Book I of the Wealth of Nations. In this and the following lectures, we will see how Smith contradicts most of his basic assertions about the “naturalness” of these things.
Benefits of Market Society - Increase of productivity through division of labor (WN 13ff) - Affluence of all (WN 22) - Reduction of class differences (WN 24)
Assumptions
- Equality, but diversity (WN 28f). Accepts analysis of Hobbes; says differences arise in upbringing. Will have to ask, then, why different classes have different outlooks. Will answer, in part, due to material conditions (classes per se), and in part due to different values (esp comparing ruling groups).
- Self-interest; tendency to barter leads to harmony (WN 25f). Like Hobbes, does not argue from altruism, but also does not ascribe deadly competition here. Will have to ask later whether Smith sees this under all conditions or whether he wants this as a result of market society. I.e., is it really part of human nature, or does it stem from social conditions?
- NB: propensity to barter and division of labor are limited by extent of market (WN 31). Characteristics and inner dynamics (WN 44-8, 72f)
- “Natural” and market prices; value. - Higgling, entering and leaving market, supply and demand.
Adam Smith Lectures - 2 - Frederick Weil February 1999
Classes and class conflict - Component parts of price: wages, profits, rent. (WN 65f) - Principles which regulate each:
* supply of labor (WN 86, 85) * accumulation of capital (WN 73, 84f) * appropriation of land (WN 160, 67)
- Reasons for conflict of interests: question of subsistence of individual