Adam Smith Was A Behavioral Economist And No Fan of Greed
Adam Smith hated greed. He'd likely be horrified to see how his name is now used. And any Smith fans who believe selfishness is a virtue distort what Smith called his best work.
2. Smith got famous first for what we’d now call psychology. Edmund Burke called The Theory of Moral Sentiments “fittest to explain those natural movements of the mind... which every Science relating to our Nature” needed (commending Smith’s "illustrations from common Life").
3. Smith begins Sentiments by observing that “the virtuous” have no monopoly on sympathy—“the most hardened violator of... laws” has sympathies. Even the “greatest ruffian,” however selfish, “evidently [has] some principles in his nature which interest him in the fortunes of others, and render their happiness necessary.”
7. Smith’s now more famous book, The Wealth of Nations (WoN, 1776), is a founding document of economics. But it is no “greed is good” free-market “Bible of Capitalism.” Consider a few “surprising” quotes:
10. "When... regulation… is in favor of the workmen, it is always just.”
12. Smith’s “public good” republicanism is baked into America’s founding documents (e.g. Jefferson held to Smith’s Scottish Enlightenment sensibility).
13. The “Declaration’s” first listed justification for Independence is America’s need to enact “Laws… necessary for the public good.” The Constitution specifies government’s duty to “promote the general Welfare” (listed right after “provide for the common defense”).
15. Thaler says all economics was behavioural until the 1940s. After that all human behaviours were filtered, fitted, and squeezed into the formulation Economics = Optimization + Equilibrium.
Illustration by Julia Suits, The New Yorker Cartoonist & author of The Extraordinary Catalog of Peculiar Inventions.
Step inside the unlikely friendship of a former ACLU president and an ultra-conservative Supreme Court Justice.
- Former president of the ACLU Nadine Strossen and Supreme Court Justice Antonin Scalia were unlikely friends. They debated each other at events all over the world, and because of that developed a deep and rewarding friendship – despite their immense differences.
- Scalia, a famous conservative, was invited to circles that were not his "home territory", such as the ACLU, to debate his views. Here, Strossen expresses her gratitude and respect for his commitment to the exchange of ideas.
- "It's really sad that people seem to think that if you disagree with somebody on some issues you can't be mutually respectful, you can't enjoy each other's company, you can't learn from each other and grow in yourself," says Strossen.
- The opinions expressed in this video do not necessarily reflect the views of the Charles Koch Foundation, which encourages the expression of diverse viewpoints within a culture of civil discourse and mutual respect.
Learn how to redesign your job for maximum reward.
- Broaching the question "What is my purpose?" is daunting – it's a grandiose idea, but research can make it a little more approachable if work is where you find your meaning. It turns out you can redesign your job to have maximum purpose.
- There are 3 ways people find meaning at work, what Aaron Hurst calls the three elevations of impact. About a third of the population finds meaning at an individual level, from seeing the direct impact of their work on other people. Another third of people find their purpose at an organizational level. And the last third of people find meaning at a social level.
- "What's interesting about these three elevations of impact is they enable us to find meaning in any job if we approach it the right way. And it shows how accessible purpose can be when we take responsibility for it in our work," says Hurst.
Erik Verlinde has been compared to Einstein for completely rethinking the nature of gravity.
- The Dutch physicist Erik Verlinde's hypothesis describes gravity as an "emergent" force not fundamental.
- The scientist thinks his ideas describe the universe better than existing models, without resorting to "dark matter".
- While some question his previous papers, Verlinde is reworking his ideas as a full-fledged theory.
TuSimple, an autonomous trucking company, has also engaged in test programs with the United States Postal Service and Amazon.
PAUL RATJE / Contributor
- This week, UPS announced that it's working with autonomous trucking startup TuSimple on a pilot project to deliver cargo in Arizona using self-driving trucks.
- UPS has also acquired a minority stake in TuSimple.
- TuSimple hopes its trucks will be fully autonomous — without a human driver — by late 2020, though regulatory questions remain.