When self-interest trumps prejudice : Adam Smith’s market as a moral exemplar

    Research output: Chapter in Book / Conference PaperChapter

    Abstract

    Purpose – This chapter makes a case for Adam Smith’s description of the market as a moral exemplar. More specifically, it argues that the behavior of the individual agents who inhabit Smith’s market is indeed morally exemplary. Methodology/approach – The basis for this argument is that economic self-interest drives market participants to look beyond any inherent prejudice or tendency to discriminate on the basis of preconceived opinions or beliefs. Some historical context is provided that illustrates conservative opposition to this perspective from unlikely sources. A simple moral framework is created to provide one possible representation of Smith’s interpretation of the market. In this framework self-interest is characterized as a ‘‘trump’’ that overcomes potential prejudices. It is further argued that this framework can be considered a moral exemplar, and that it is also important in facilitating exchange between participants. Findings – The central argument is tested when the self-interest criterion is exposed to competition from the alternative moral value of altruism. The moral framework presented, and the principle of economic self-interest in particular, is resilient against this moral challenge. Social implications – The social implications of this argument relate directly to our normative understanding of how individuals should behave in a market context. The chapter establishes a link between this moral framework and the functioning of the market.
    Original languageEnglish
    Title of host publicationMoral Saints and Moral Exemplars
    EditorsMichael Schwartz, Howard Harris
    Place of PublicationU.K.
    PublisherEmerald
    Pages5-25
    Number of pages21
    ISBN (Print)9781783500741
    DOIs
    Publication statusPublished - 2013

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