The Real Adam Smith: Morality and Markets - Full Video

The video begins by discussing pervasive issues like corruption, fraud, and economic inequality, leading many to question the fairness of the system. The narrative introduces Adam Smith, an 18th-century Scottish philosopher known for his pioneering work in economics and moral philosophy, who addressed the relationship between morality and the marketplace.

Adam Smith's early life in Scotland is explored, highlighting his upbringing and education in Kirkcaldy and Glasgow. Smith became a key figure in the Scottish Enlightenment, known for his concepts like the 'invisible hand' and the 'impartial spectator.' These ideas formed the basis of his work on morality and economics, encapsulated in his books, 'The Theory of Moral Sentiments' and 'The Wealth of Nations.'

The historical context of Edinburgh during the Scottish Enlightenment is described, detailing the union of Scotland, Ireland, and Wales into the United Kingdom and the subsequent cultural and intellectual revolution. The video underscores Smith's deep concern for the poor and his belief in free markets as a means to improve their well-being, bridging contemporary left and right ideologies.

A visit to the church and school Smith attended as a child reveals his early exposure to market dynamics and classical education. Observing the local market from his home, Smith developed an interest in economics and human behavior, which later influenced his economic theories based on exchange and trust as foundations of societal success.

Smith's academic journey continued at the University of Glasgow, where he was influenced by Enlightenment thinkers like Francis Hutcheson and David Hume. These experiences shaped Smith's revolutionary ideas on morality and human development, leading him to question traditional views and eventually harness the scientific method to explore economics and society.

Back in Edinburgh during the Scottish Enlightenment, Smith engaged with a vibrant community of intellectuals. He challenged traditional notions of morality, proposing empathy as a fundamental human trait. His lectures in Edinburgh on rhetoric and jurisprudence extended into discussions about human behavior, the origins of language, and the evolution of moral values.

Smith developed his idea of the 'impartial spectator' as a guide for personal morality, whereby individuals judge their actions from the perspective of an unbiased observer. This concept emphasizes internal moral dialogues and underpins his analysis of social behavior and ethics in 'The Theory of Moral Sentiments.'

Appointed as a professor at the University of Glasgow, Smith taught subjects ranging from ethics to economics. Notes from his lectures indicate that he explored concepts such as the price mechanism, protectionism, and economic institutions, revealing his intertwining of justice with economic discourse, which would later solidify in his seminal works.

Smith's first major work, 'The Theory of Moral Sentiments,' was a success, detailing his views on social evolution as something driven by individual actions rather than design. He criticized the 'man of system' who imposed top-down economic controls and championed free markets as preferable for economic health.

Smith's travels through Europe, particularly to Paris, allowed him to interact with leading French economists, the Physiocrats, who shared some of his views on market liberalization but diverged on the need for state intervention. His observations on the division of labor and free trade laid the groundwork for 'The Wealth of Nations.'