Worldly Philosophers Chapter 3 Summary

Chapter 3 of the book, "Worldly Philosophers" is mainly focused on Adam Smith and the "world" he belonged in. It starts off with the talk of a new vision, a remarkable vision that was formulated by no other than the Father of Modern Economics, Dr. Adam Smith. The talk of his vision was followed not only by a short biography of the renowned economist but of also brief narratives of his "absences of mind". Adam Smith was born on 1723 in Kirkcaldy, County Fife, Scotland. He was a moral philosopher and a revolutionary political economist. In 1751, the Chair of Moral Philosophy at the University of Glasgow was bestowed upon Smith; seven years after that, he became the dean. The unconventional character that was Adam Smith was not the only reason
He divided moral systems into two parts, the motive of morality which is man's self- love and the nature of morality which is sound moral judgment, or the act of compassion and generosity. Smith rejected the view in the capability of man to form such judgments which centrally concentrates on his self- interest. Smith's other book, which was discussed in depth in the following paragraphs in the third chapter, "The Wealth of Nations" strongly points out that man and his self- interest are the factors in which society benefits from. These two contradicting factors lead to "The Adam Smith Problem". In "Worldly Philosophers", it is clearly seen that Smith has articulated the answer to this paradox. He said that the answer lays in our capabilities to craft a benevolent view if we ‘put ourselves in the shoes of others'. Self- interest does not insinuate a selfish act, rather more of a sympathetic
For example, supposing it takes one man an hour to make a 3 pairs of slippers, if labor is divided and two men come into the picture to specialize in a certain aspect, the three make twelve pairs in one hour. The Law of Accumulation is seen as one of the two laws which drive the market system in increasing productivity. Generally this law means that the accumulation of capital unavoidably advances in the capitalist mode of production. However, there will come a time when accumulation will not be possible anymore and this problem is remedied by the second law, The Law of Population. For instance, if the man who opened up a business sought more profit, thus the Law of Accumulation, he would need to produce more goods which means he needs more manpower, therefore the number of workers would increase because he demands more. Of course, manpower does not come free, he then would increase their salaries. However, if there is an increase in his expenditure, as a form of salary, he would have less profit. So, he would have to let go of some of his workers so that his profit will be at the optimal