Introduction
Adam Smith is best known for his seminal work "The Wealth of Nations" and his ideas on economics. However, in his lesser-known book "The Theory of Moral Sentiments," Smith explored deep philosophical and psychological concepts that can offer profound insights into human behavior and happiness. In "How Adam Smith Can Change Your Life," author Russ Roberts examines Smith's moral philosophy and shows how we can apply these timeless ideas to transform our own lives and society.
While Smith is often associated with free-market economics, this book reveals a different side of the philosopher - one concerned with ethics, virtue, and what it truly means to live a good life. Roberts distills Smith's key ideas into practical wisdom that remains remarkably relevant today, over 250 years after they were first written.
The Inherent Selfishness of Human Nature
Smith argued that humans are fundamentally selfish creatures, driven by what he called "self-love." To illustrate this point, he used a thought experiment: Imagine hearing about a devastating earthquake in a far-off land that killed millions of people. Now imagine being told you need to have your little finger amputated due to infection. Which scenario would bother you more?
Most of us, if we're honest, would likely be more distressed about losing our finger than about millions of strangers dying. This reveals the inherent self-centeredness of human nature - we instinctively prioritize our own interests and wellbeing above all else.
However, Smith argued that there are limits to this selfishness. While we may care more about our finger than strangers, most of us would not actually sacrifice millions of lives to save our finger if given the choice. This shows that humans are capable of moral behavior despite our selfish impulses.
The Impartial Spectator: Our Inner Moral Compass
If humans are inherently selfish, what stops us from always acting in our own self-interest at the expense of others? Smith proposed that we all have an "impartial spectator" within us - an internalized moral compass that observes and judges our actions.
This impartial spectator represents our conscience and our ability to view our own behavior objectively, as if from the perspective of an outside observer. It's the voice in our head that tells us when we're doing something wrong or behaving dishonorably.
By paying attention to this inner spectator, we can improve our behavior and become more virtuous. For example, the author describes how he used to dominate conversations on his podcast, not giving his guests enough time to speak. After receiving feedback from listeners, he was able to tap into his impartial spectator, see his behavior from an outside perspective, and make a conscious effort to improve.
The Key to Happiness: Being Worthy of Praise
What's the secret to happiness? According to Smith, it's not wealth, fame, or even being loved - it's being worthy of love and admiration. As he put it: "Man naturally desires, not only to be loved, but to be lovely."
In other words, simply receiving praise or adoration isn't enough to make us truly happy. We need to feel that we've earned and deserve that praise. This explains why people who achieve fame and fortune through dishonest means, like Bernie Madoff, are often deeply unhappy despite their outward success. They know they don't truly deserve the admiration they receive.
On the other hand, someone like Warren Buffett, who earned his wealth and respect through skill and honest dealings, can genuinely enjoy the praise he receives because he knows he's worthy of it.
To apply this insight in our own lives, we need to focus on cultivating genuine virtue and rejecting false praise. It might feel good in the moment to accept flattery from someone trying to get on our good side, but if we know we don't deserve it, it won't bring us real happiness. True contentment comes from knowing we've earned respect through our actions and character.
The Danger of Self-Deception
While rejecting undeserved praise from others is important, an even greater threat to our happiness is the praise we give ourselves through self-deception. Smith observed that humans have a remarkable ability to trick themselves into believing their actions are more honorable than they really are.
This tendency towards self-deception is deeply ingrained in human psychology. Modern researchers have identified it as "confirmation bias" - our inclination to seek out information that confirms our pre-existing beliefs while ignoring contradictory evidence.
We see this play out in many areas of life. Two economists with opposing views might look at the same economic data and come to completely different conclusions, each finding evidence to support their existing theories. On a personal level, we often rationalize our selfish actions by convincing ourselves we had noble motives.
For example, if we refuse to help a sibling with their homework because we're busy with our own work, we might tell ourselves: "By focusing on my own success, I'll be a better role model and be able to help them more in the future." While this may sound plausible, it's often just a way of justifying our selfish behavior to ourselves.
Overcoming self-deception requires honest self-reflection and a willingness to confront uncomfortable truths about ourselves. By developing this self-awareness, we can align our actions more closely with our values and find greater happiness and fulfillment.
The Misguided Pursuit of Wealth and Fame
When we think of happiness, many of us instinctively associate it with wealth and fame. We look up to celebrities and successful business people, assuming their lives must be filled with joy and satisfaction. This leads many to pursue similar paths, chasing money and status in the belief that these things will bring happiness.
However, Smith argued that this pursuit is fundamentally misguided. While wealth and fame may bring certain comforts and privileges, they often come at the cost of peace of mind and genuine contentment. The path to fame and fortune is usually paved with stress, anxiety, and a relentless pace of life that leaves little room for true happiness.
We need only look at the lives of many celebrities to see the truth in this. Despite having all the fame and fortune one could want, figures like Michael Jackson and Marilyn Monroe struggled with deep unhappiness and personal demons.
The True Path to Happiness: Wisdom and Virtue
Instead of chasing wealth and fame, Smith proposed a different path to happiness: cultivating wisdom and virtue. By focusing on developing our character and acting with integrity, we can earn genuine respect and admiration, which leads to true contentment.
But what exactly does it mean to be wise and virtuous? For Smith, it largely came down to acting with propriety - behaving in ways that others find appropriate and acceptable given the situation. This doesn't mean blindly following social norms, but rather showing genuine care and consideration for others in our interactions.
For example, if a friend looks worried after you ask about their vacation, the appropriate response would be to inquire if something is wrong. This shows empathy and concern, building trust and respect in the relationship. However, it wouldn't be appropriate to ask a stranger on the street why they look worried - that would be seen as intrusive and odd.
By consistently acting with wisdom and virtue, we not only improve our own lives but also positively influence those around us. This ripple effect can extend far beyond our immediate circle, potentially changing society for the better.
Changing the World Through Individual Virtue
Many people believe that to make a real difference in the world, we need to do something "big" or be in a position of power. We often think that meaningful societal change can only come from the top down, through laws and regulations enacted by governments.
However, Smith argued that this view is misguided. While governments play important roles in managing infrastructure, maintaining law and order, and regulating certain aspects of society, they are not well-suited to shaping moral behavior or cultural values. In fact, attempts at top-down moral control often lead to tyranny and oppression, as seen in regimes like those of Stalin or Pol Pot.
Instead, Smith believed that real, lasting societal change comes from the bottom up, through the actions of ordinary individuals. By committing ourselves to virtuous behavior, we can influence those around us and gradually shape the values of our communities and society at large.
This might seem like a small thing, but the cumulative effect of many individuals acting virtuously can be profound. For example, if a colleague tells an offensive joke at work, how you respond can help shape the culture of your workplace. Laughing along normalizes the behavior, while expressing disapproval helps create an environment where such jokes are unacceptable.
When we extend this principle to all areas of life, we can see how our individual choices and actions, though they may seem insignificant on their own, can add up to create meaningful change in the world.
The Power of Small Acts of Virtue
One of the most empowering aspects of Smith's philosophy is the idea that we don't need wealth, fame, or political power to make a difference in the world. We already have everything we need to be a force for positive change - our own capacity for wisdom and virtue.
Every day presents us with opportunities to act virtuously and influence those around us. It might be as simple as showing kindness to a stranger, standing up against injustice when we see it, or making an effort to understand someone with different views from our own. These small acts of virtue may not seem like much in the moment, but they can have a ripple effect that extends far beyond our immediate interactions.
Moreover, by consistently acting with integrity and kindness, we serve as role models for others. Our behavior can inspire those around us to reflect on their own actions and strive to be better. In this way, individual virtue can gradually transform entire communities and societies.
The Three Pillars of Virtue
To help guide us on the path to virtue, Smith outlined three key principles:
Prudence: This involves taking care of ourselves and avoiding unnecessary risks. It's about making wise decisions that ensure our own wellbeing and security. However, prudence should not come at the expense of others or lead to excessive self-interest.
Justice: At its core, justice means not harming others, especially not for our own benefit. It's about respecting the rights and wellbeing of others, even when it might be advantageous for us to do otherwise.
Beneficence: This goes beyond simply avoiding harm and calls on us to actively do good for others whenever we can. It's about generosity, kindness, and a genuine desire to improve the lives of those around us.
By striving to embody these three principles in our daily lives, we can become more virtuous individuals and contribute to a better society.
The Challenge of Living Virtuously
While Smith's ideas about virtue and happiness are compelling, putting them into practice is not always easy. We live in a world that often seems to reward self-interest and prioritize material success over moral character. Moreover, our own selfish impulses and tendency towards self-deception can make it challenging to consistently act with wisdom and virtue.
However, the difficulty of the task doesn't diminish its importance. By making a conscious effort to cultivate virtue, reject false praise (including from ourselves), and act with propriety, we can gradually become better versions of ourselves. This journey towards virtue is not about achieving perfection, but about continuous improvement and growth.
Conclusion: The Enduring Relevance of Smith's Ideas
Despite being written over two centuries ago, Adam Smith's insights into human nature, happiness, and virtue remain remarkably relevant today. In a world often characterized by materialism, self-interest, and moral relativism, Smith's emphasis on genuine virtue and earned respect offers a refreshing and potentially transformative perspective.
By embracing Smith's ideas, we can not only improve our own lives and find greater happiness, but also contribute to positive change in our communities and the world at large. The path to virtue may not always be easy, but it offers rewards far more meaningful and lasting than wealth or fame ever could.
As we navigate the complexities of modern life, Smith's wisdom serves as a valuable guide, reminding us of what truly matters and empowering us to become the best versions of ourselves. In doing so, we can indeed change our lives - and perhaps, in our own small way, change the world.