George Stigler criticism, Adam Smith
In a fluent way of manifesting the criticisms economists have on Adam Smith, George Stigler classifies Adam's notion on wealth based on self interest. In a nutshell, self interest creates a provision for a substantial foundation on the notion that was developed on nations' wealth. To add to that, as Smith's work forms a bedrock for economic science in the modern world, self interest turns out to be the primary principle in economics. Smith refrains from making reference to self interest in the analysis of the popular passage motives but rather resort to the phrase ‘self love'. From these two phrases ‘self interest' and ‘self love' a misconception can arise that the two are synonyms.
The most indebted intellect by Adam's work is Hirschman. In his work on interests and passions, there has been evidence of relationships between moral philosophical development and modern model on self interest and rationale for state theory. Adam's article contributes much support to Hirschman's work and emphasizes it more. There are certain instances when Smith contradicts himself. This should not be considered as failure as far as his works is concerned. Similar to his classical ideologies, Smith fronts an argument that, in order for one to get the truth, an issue being debated should be viewed from all perspectives (Miller, 1993). Clarity on this has been made on moral sentiments theory, where Adam adopts debates on commerce corruption influence, and consequently denies them to be splenetic philosophy.
[...] As much the interpretation of self interest is easily floated in mind, it is a testimony of interest paradigm. Initially, the idea to pursue self interest by agents of independence would lead to equilibrium. From a social scientist point of view, this model of interest conforms to injunctions that an individual should not assume without basing his facts on an issue. Every time an individual's behavior tries to challenge the assumption of self interest being the only motivation for every action, ideologist must be persistent to this axiom. [...]
[...] To add to that, as Smith's work forms a bedrock for economic science in the modern world, self interest turns out to be the primary principle in economics. Smith refrains from making reference to self interest in the analysis of the popular passage motives but rather resort to the phrase ‘self love'. Contrary to this, cost incurred in the negotiation of agreements appears to be high, and then vital savings are reached by consigning activity under one authority (Milgrom & John, 1990). References Hirschman, A. O. ( 1970). Exit, Voice, and Loyalty. Cambridge: Harvard University Press. [...]
[...] Adam smith refrained from the fact that as much as an individual's economic behavioral pattern is always predictable there always few instances when the pattern changes (Smith, 1776). Another intellect asserted that in case the universe in physical form was a subject to motional law, then the universe in moral form will be a subject to interest. In General, self interest stands out as the only motivation for human action. Smith refrains from making reference to self interest in the analysis of the popular passage motives but rather resort to the phrase ‘self love'. [...]
[...] Miller, G. J. (1993). Managerial Dilemmas: The Political Economy of Hierarchies. Cambridge: Cambridge University Press. [...]
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