Title: ??(The Wealth of Nations): ????????????
1????????
2? ?
- I. ?????--????????
- ??(The Wealth of Nations) ????????????
- ????? ???????? ( Das Adam Smith Problem)
- II. ??( François Quesnay )????
????????? - ????????-???? (cruel and cool)
- ??
3An Inquiry into the Nature and Causes of The
Wealth of NationsBy Adam Smith 1723-1790
- The annual labour of every nation is the fund
which originally supplies it with all the
necessaries and conveniences of life which it
annually consumes
4V. Challenges Ahead
5According to The Wealth of Nations
- Wealth is not a fixed quantity - wealth is a
function of labor productivity and therefore of
people, and of the incentives which encourage
them to raise productivity. - Even today, some people still mistakenly believe
that the worlds wealth is a fixed quantity, and
where one grows richer and another grows poorer.
6Adam Smith
- Since mercantilists and colonialists believed
that wealth was limited, they wanted the
government to keep most of it. They established
government-authorized monopolies, controlled by
their friends and supporter, using the police to
stop anyone from competing with the monopolies.
7The Wealth of Nations Specialization and
Division of Labor
- Nations have become wealthy because labour has
become more productive. - Labour is more productive because it is more
specialized tasks have been divided and
subdivided until anyone can easily learn to do
any job and do it well. - The division of labor saves time that is lost in
passing from one species of work to another. - The division of labour leads to invention, and it
makes it easier for a worker to learn and become
skilled at the job.
8The Wealth of Nations - Market and Capital Stock
- The extent of the division of labour is limited
by the extent of the market. - The more people there are involved in mutual
exchange, the more specialized each can be. - The accumulation of capital (stock) is also
relevant - Labour can be more and more
subdivided in proportion only as stock is
previously more and more accumulated
9The Wealth of Nations - Liberalism
- Laissez Faire
- Every man, as long as he does not violate the
laws of justice, is left perfectly free to pursue
his own interest his own way - A system of natural liberty a nations wealth is
increased by whatever industry is most
profitable, i.e. whatever industry produces the
greatest surplus, available to support further
division of labour. - Therefore, the government should not try to
direct industry into export industry, or into
agriculture, or in any particular direction.
10The Wealth of Nations - Speculation
- Those who are called philosophers or men of
speculation, whose trade it is, not to do any
thing, but to observe everything and who, upon
that account, are often capable of combining
together the powers of the most distant and
dissimilar objects.
11According to Adam Smith
- Self-interest is an unchangeable part of human
nature, so it is wise to let personal incentives
build a richer economy. - Strong government was a great necessity,
particularly to create and enforce laws and to
ensure justice.
12 Adam Smith
- The sovereign has only three duties
- first protecting the society from violence
and invasion - secondly protecting every member of the
society from the injustice or oppression of
every other member - thirdly erecting and maintaining certain public
works and certain public institutions which it
can never be for the interest of any individual,
or small number of individuals
13 Adam Smith
- Government and the people should do what it does
best - ?businessmen should not control the
- justice system
- ?government should not try to run
- businesses.
- ?Monopolyis a great enemy to good
- management.
14 Regarding Government
- The market works less efficiently in the
developing economy than in the developed economy. - The market gives better service in rich than in
poor countries, so also the government tends to
be better administered, has more resources, and
is slightly less dominated by politics and
personal advantage in decision making. - The imperfect solution of the market could be
better than that of the government. The
government needs to be modernized just as much as
the market. Also the assumption that the
government represents the people may not hold
W.A. Lewis, The State of Development TheoryAER
(March 1984), p.4.
15According to Adam Smith
- ????
- No society can surely be flourishing and happy,
of which the far greater part of the members are
poor and miserable.
16According to Adam Smith
- Adam Smiths economy grows to its full
complement of riches as permitted by its laws
and institutions, and there it rests.
Arthur W. Lewis, 1984
17Das Adam Smith Problem
- Question raised by German Historical School
- How to reconcile altruism in Morality laid
out vividly in Moral Sentiments of which the
first chapter in on Sympathy, and self interest
in Economics which is the core of Wealth of
Nations. - ???????????,??????????????????,?????????????,????
???????????
18Das Adam Smith Problem
- Chronology of Smiths teaching and writing career
- 1723 born
- 1737 Glasgow, studying Greek, Latin,
Mathematics and Morality - 1940 Oxford, studying Philosophy
- 1948 Edinburgh, lecture
- 1750 Lecture note on Economics
- 1751 Glasgow, Professor of Logic 1752
Professor of Morality - 1759 Publishing MS
- 1761 2nd ed. of MS expanding the part on
Politics, Economics and - Jurisprudence
- 1763 Lecturing on Law, Police, Revenue,
and Arms. - 1764 Turing in European continent for 2
years and 8 months with - Duke Buccleugh and starting to
draft WN -
19Smith Problem (cont)
- 1765.12-66.10 meeting F. Quesnay in Paris
- 3rd ed. MS, adding considerations concerning
the first - formation of languages
- More information on taxation in America, 4th ed
MS - 1776 Publication of WN
- 2nd ed. WN
- 5th ed. MS
- 3RD ed. WN
- 1786 adding Introduction and the final edition
of WN - Honorable principal of Glasgow U.
- intensive revision of MS, adding sec. III, Ch.3
- 1790 the final 6th ed. of MS
20Let Smith Answer the Question
- Smith has constantly and interweavingly revised
MS and WN. - In the last paragraph of the present work, I
said, that I should in another discourse
endeavour to give an account of the general
principles of law and government and in what
concerns police, revenue, and arms, and whatever
else is the subject of law. In the Enquiry I
have partly executed this promise at least so
far as concerns police, revenue, and arms.
Advertisement, MS. - ???(???)?????,??,??????????????????,????????????
,??????????,???????????????????????,??????????????
???
21Let Smith Answer the Question
- In Scotland then, moral philosophy covers
ethnology, morality, jurisprudence, and politics
including political economy. - What purpose isthe pursuit of wealth?
- what are the advantages which we propose by
that great purpose of human life which we call
bettering our condition? To be observed, to be
attended to, to be taken notice of with sympathy,
complacency, and approbation - ??????????????,?????????
- ???????????????????????????????????????,????,????,
????,??????
22Let Smith Answer the Question
- It is the vanity, not the ease, or the pleasure,
which interests us. But vanity is always founded
upon the belief of our being the object of
attention and approbation. - the eye is larger than the belly, The capacity
of his stomach ( the land lord )bears no
proportion to the immensity of his desires, and
will receive no more than that of the meanest
peasant. - ?????,?????????????,??????????????????????????????
??? - ?????????????????????????,???????????????
23Let Smith Answer the Question
- In what constitutes the real happiness of human
life, they are in no respect inferiour to those
who would seem so much above them. In ease of
body and peace of mind, all the different ranks
of life are nearly upon a level, and the beggar,
who suns himself by the side of the highway,
possesses that security which kings are fighting
for. - ????????????????????,????????????????????????????
??,??????????????????????????????,????????????????
???????
24Let Smith Answer the Question
- When Providence divided the earth among a few
lordly masters,They are led by an invisible hand
to make nearly the same distribution of the
necessaries of life, which would have been made,
had the earth been divided into equal portions
among all its inhabitants - ?????????????,(????????????????)??????,?????????
?????????????????????????
25Let Smith Answer the Question
- On government The man of system, is apt to be
very wise in his own conceit, and is often so
enamoured with the supposed beauty of his own
ideal plan of government. - ????????????,????,???????????????????????
26(No Transcript)
27The Theory of Moral Sentiments1759Chapter I.
Of Sympathy
- How selfish soever man many be supposed, there
are evidently some principles in his nature,
which interest him in the fortune of others, and
render their happiness necessary to him, though
he derives nothing from it, expect the pleasure
of seeing it. - ??????????,??????????,??????????,????????????,????
???,???????
28 ? ?
- ????,???????-????????????
- ????????????????
- ?????????????????
- ?????????????????????????????????????????????????
29 Part 1 ?? Wealth
- ?????,???????,???????,??????????
- ?????????,?1?????????????????????
- ?????????????,??????????
?1?????????,?????????,?WN, V.I.f.50 781-5?
30 Part 1 ?? Wealth
- ??????????,?????,???,???????????????????
- ?????????????????
- ????????,???????????,????????????,???????????
31 Part 1 ?? Wealth
- ?????????????????????,??????????????
- ?????????????,?????????3
- ?????,??????????????????
?3?WN, IV.ii.11 456?
32 Part 1 ?? Wealth
- ???????????????????????,??????????????????????
- ??????????????
- ???????????????????
33 Part 1 ?? Wealth
- ???????(???????),???????????,??????????????,?????
???????????,???????4 ????????????,??????????? - (???)??????????
- ????????????,????????????????????
?4???????lt????gt??TMS, IV.I.8 181?
34 Part 1 ?? Wealth
- ???????????????(To own or to be)
- ??????????,?????????????,????????5
- ?????????????????????????????,????????????????????
???6
?5??????????????????(Paradise Lost, 1674),
Book 1, Line 253? ?6?TMS, III.3.31 149?
35 Part 1 ?? Wealth
- ????????????,?????,??????????????,??????????,????
?????????7 - ??????????,??????,???????8
- (???)???????????,???????
?7?TMS, III.3.31 150? ?8??????????????????Es
say on Astronomy(EPS, IV.34, p.75)?,?????????????
???????????????????(Stewart, EPS, p.275)?
36 Part 2 ?? Transformation
- ???????????????,???????????,????????????????????
????,??????? - ???????,?????????!
- ????????????????
?9 ??????,????,????????????????????,????????????
???,???,???????????(TMS, iii.2.6-7 116-117)?
37 Part 2 ?? Transformation
- ???????????,???????????????????10
- ????????????,???????,???????????11
?10?TMS, I.I.1 7? ?11??TMS, I.ii.2.1 32?
38 Part 3 ?? Virtue
- ???????????????!?????????????????????
- ????,??????????????????????????13
- ??????????????????(?????????),????,???????????????
??
?13???????????????TMS, I.I.1.5 10?
39 Part 3 ?? Virtue
- ??????,??????????????????
- ?????????????
- ??????????????????????,????????14
- ?????,????,????(??)??????????15
?14?WN, IV.ii.6 454? ?15?J.S. Coleman,
Social Capital in the Creation of Human
Capital, American Journal of Sociology, 94
(Supp1.), 1988, pp. s95-s120?
40 Part 3 ?? Virtue
- ?????????????,?????????????
- ?????????,???????????,??????????,?????????????
- ???????????,????????????????
41 Part 3 ?? Virtue
- ??????????????????????????????????????????????????
??????????16 - ???????????, ?????????????????
?16?TMS, VI.I.14 216?
42 Part 3 ?? Virtue
- ???????????,?????????????????????17
- ????????????,????????????????
?17???????1689???????????????????????????
43II. ??( Françis Quesnay )????
44François Quesnay1694-1774
- ????(Physiocrats)?????(Agricultural system)
- ???????,?1755??????????,62??????????
45Quesnay
- You recognize but one rule of commerce that is
to allow free passage (laissez passer) and
freedom of action (laissez faire) to all buyers
and sellers whoever they may be. - ???????????????????????
46Quesnay
- ???(Tableau Economique)????
- ???,???????????????????????????
- ???,????????????????????
- ??????????????????????????????,????,???????????
47Quesnay
- ????
- Money resembles the blood of human body.
48- ??????????
- ??????????????
Delivering oxygen, nutrients, hormones...
Red blood cells
White blood cells
Looking out for signs of disease and producing
antibodies and attacking
49V. Challenges Ahead
?????????
?????
Investment Proposals
?????
???? ????
Resource Deprivation
(RBC)
(WBC)
???? ??
?? ?? ??
Inefficient Allocation
Case approved
????
Resource Acquisition/Allocation
Efficient Allocation
50III. ? ?