Notes

The Theory of Moral Sentiments

March 12, 2023

Adam Smith is today known for his concept of “the invisible hand” where people, in pursuit of their selfish interests, could create products and services that other people wanted. When this happens, there is increased economic growth and prosperity for everybody. However, in his lesser-known book, The Theory of Moral Sentiments, Smith argues that people’s behavior are also influenced by another kind of “invisible hand” - the approval or disapproval of others. Although people are inherently selfish and self-centered, the approval or disapproval of others serves as feedback for the kinds of behavior that should be repeated in the future. Hence, majority of the time, most people will behave in a prosocial manner because doing so is likely to be rewarded with social approval while not doing so will be met with social disapproval.

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