Other-perspective taking, distancing, time discounting as well as risk and loss aversion highly affect decision-making. Even though they influence each other, so far these cognitive processes have been unrelated or only partly related to each other in neuroscience. This article proposes a philosophical interpretation of these cognitive processes that is elaborated in the updated theory of Adam Smith’s prudence. The UTSP is inspired by Smith’s account of prudence and is in line with the neuroscientific and behavioral studies on OPT, distancing, (...) time discounting as well as risk and loss aversion. The UTSP represents a framework aiming to interpret and connect these cognitive processes and providing a consistent and empirically sound account of a “Smithianly” prudent style of decision-making. The two pillars of the UTSP are the shift of perspective in space and time and loss aversion. On the basis of this theory, a normative updated theory of Smithian prudence is outlined. The latter is useful for moral philosophy for two reasons: firstly, according to preliminary evidence, it is effective in guiding the agent in decisional contexts in which her well-being is at stake and she can affect other people with her actions. Secondly, since the NUTSP is based on neuroscientific findings on decision-making, it has a sound empirical basis that prevents a source of alienation for the agent. (shrink)

This paper argues that the neo-Augustinian outlook of the French moral tradition has been used for too long as a Procrustean bed, thereby depreciating the Dutch background of Mandeville's thought. In particular, Johan and Pieter de la Court were an important source of inspiration for Mandeville. In trying to come to terms with commercial society, the brothers developed a positive theory of interest and the passions, emphasizing the social utility of self-interest and honour in securing the health and wealth of (...) the commonwealth. By combining elements from neo-Augustinian and Dutch commercial republican discourses, Mandeville devised a new logic for interpreting the nature and growth of commercial society, which was to inspire intense debate. (shrink)

Recent studies have investigated connections between Adam Smith’s economic and philosophical ideas and Catholic Social Teaching (CST). Scholars argue that their common background lies in their respective anthropologies, both endorsing a relational view of human beings. I raise one main concern regarding these analyses. I suggest that the relationality endorsed by Smith lacks a central element present in CST—the other-oriented perspective which is the intentional concern for promoting the good of others. Some key elements of CST, such as love, gift, (...) gratuitousness, and fraternity, find a very different space in Smith’s social view and very little space in his economic view. Moreover, I show how CST relationality is more in accordance with a civil economy view of the market as a place of fraternity and mutual assistance. (shrink)

In the year 1749 Adam Smith conceived his theory of commercial liberty and David Hume laid the foundation of his monetary theory. These two intellectual developments, despite their brevity, heralded a paradigm shift in economic thinking. Smith expanded and promulgated his theory over the course of his scholarly career, culminating in the publication of The Wealth of Nations in 1776. Hume elaborated on the constituents of his monetary framework in several essays that were published in 1752. Although Smith and Hume (...) devised their economic theories in 1749 independently, these theories complemented each other and to a considerable extent created the structure of classical economics. (shrink)

This article analyzes the relationship between competition and justice in Adam Smith in order to determine to what extent competition can promote and undermine justice. I examine how competition features in two basic motivations for human action, “the propensity to truck barter and exchange,” and “the desire of bettering our condition.” Both can be traced back to the desire for recognition, but they operate in very different ways. The former manifests itself in social cooperation, chiefly commercial exchange and the division (...) of labor, and while it can take a competitive form, competitive success produces benefits for everyone. In contrast, the latter may manifest itself in win‐lose social competition. Commercial society harnesses both motivations, and both have negative as well as positive effects. However, while Smith explicitly addresses the negative effects of excessive specialization in the division of labor, it is less clear how he thinks the negative effects of social competition can be addressed. I argue that competition can undermine justice when (i) it pits people against each other and (ii) leads to psychological corruption. I conclude with some reflections on what a focus on competition adds to our understanding of Smith's work. (shrink)

What did Rousseau's readers mean when they called him an ‘Epicurean’? A seemingly simple question with complex implications. This article attempts to answer it by reconstructing Rousseau's contemporary reception as an Epicurean thinker. First, it surveys the earliest and most widely read critics of the second Discourse: Prussian Astronomer Royal Jean de Castillon, Jesuit priest Louis Bertrand Castel, and Hanoverian biblical scholar Hermann Samuel Reimarus. These readers branded Rousseau an Epicurean primarily to highlight his atheism, his anti-providential and materialist natural (...) philosophy. Then, it discusses Genevan pastor Jacob Vernet's positive assessment of Rousseau as a critic of ‘fashionable’ Epicureanism, before reconstructing Rousseau's critique of the reception of Alexander Pope's Essay on Man as an Epicurean text. These sources elucidate Rousseau's engagement with a range of ideas and argumentative positions that would inform his later self-identification as a ‘refined’ Epicurean. In particular, they highlight his interest in how a sentimental awareness of beauty might mitigate the potentially vicious effects of hedonism. The article concludes with novelist Mme. de Genlis’ critique of Rousseau's Wise Materialism, using his thoughts on the imagination to suggest some of the ways the neglected aesthetic dimensions of Rousseau's reception of Epicureanism might be developed. (shrink)

This paper argues that economics, over the past 200 years, has become steadily more anti-philosophical and that there are three stages in the development of economic thought. Adam Smith intended economics to be a descriptive social science, rooted in an understanding of the moral and psychological processes of an individual’s decision-making and its connection to society in general. Yet, immediately after Smith’s death, economists made a clean cut and invented a totally new discipline: they switched towards a physicalist understanding of (...) human nature. Humans, like atoms, follow a natural law: they are driven by an emotion (defined as a non-emotion, rationality), namely selfishness. Thus economics became a ‘natural’ science. In the 20th century, the second reinterpretation removed all traces of humanity from the study of economics and declared economics to be a formal science like mathematics and logics. The actor in Phase 3 economics is homo economicus syntheticus, a postulate whose only connection to real humanity is the word homo. The paper asks what the results of this dramatic relocation are and why Phase 3 economics still claims descent from Smithian economics, despite the massive differences. (shrink)

In this paper, we examine the viability of avoiding value judgments encoded in thick concepts when these concepts are used in economic theories. We focus on what implications the use of such thick concepts might have for the tenability of the fact/value dichotomy in economics. Thick concepts have an evaluative and a descriptive component. Our suggestion is that despite attempts to rid thick concepts of their evaluative component, economists are often not successful. We focus on the strategy of explication to (...) remove the evaluative component of thick concepts and argue that often economists either have to make value judgments or are unable to individuate out the phenomenon under analysis. We support our claim with a case study, namely the concept of addiction in Gary Becker and Kevin Murphy’s Theory of Rational Addiction (1988). One consequence of our analysis is that theories containing thick concepts could commit economists to making value judgments and as such undermine the fact/value dichotomy. (shrink)

ABSTRACTIn this article, I explore the complex and unappreciated relationship between the moral and political thought of Cicero and Adam Smith. Cicero’s views about justice, propriety, and the selfish love of praise find new expression in Smith’s Theory of Moral Sentiments. I illustrate the important ways in which Smith adopts – often without attribution – Cicero’s precepts and moral judgments. I then go on to demonstrate how Smith strips those Ciceronian conclusions from their original justifying grounds in teleology and natural (...) law. In their place, Smith injects his own psychology based in sentiments as a new account of why it is that we prefer virtue and justice to their opposites. By exploring this relationship, I hope to shed light on an important dynamic whereby modern thought has creatively adapted classical moral and political concepts. (shrink)

Prompted by Derrida's work on the animal-fable in eighteenth-century debates about political power, this article examines the role played by the fiction of the animal in thinking of pity as either a natural virtue (in Rousseau's Second Discourse) or as a natural passion (in Mandeville's The Fable of the Bees). The war of fables between Rousseau and Mandeville – and their hostile reception by Samuel Johnson and Adam Smith – reinforce that the animal-fable illustrates not so much the proper of (...) man as the possibilities and limitations of a moral philosophy that is unable to address the political realities of the state. (shrink)

In his posthumously published lectures, Politics in Commercial Society, István Hont argues that Jean-Jacques Rousseau and Adam Smith should be understood as theorists of commercial society. This article challenges Hont’s interpretation of both thinkers and shows that some of his key claims depend on conflating the terms ‘commercial society’ and ‘commercial sociability’. I argue that, for Smith, commercial society should not be defined in terms of the moral psychology of commercial sociability, before questioning Hont’s Epicurean interpretation of Smith’s theory of (...) sociability. I then turn to Rousseau and outline some of the difficulties involved with classifying him as a theorist of commercial society, the most important of which is that he often appeared to be more deeply opposed to commercial progress than Hont suggests. I conclude by highlighting some of the most salient differences between Rousseau’s and Smith’s views of the politics of eighteenth-century Europe. (shrink)

Istvan Hont’s classic work on the theoretical links between the seventeenth-century natural jurists Hugo Grotius and Samuel Pufendorf and the eighteenth-century Scottish political economists remains a popular trope among intellectual and economic historians of various stamps. Despite this, a common criticism levelled at Hont remains his relative lack of engagement with the relationship between religion and economics in the early modern period. This paper challenges this aspect of Hont’s narrative by drawing attention to an alternative, albeit complementary, assessment of the (...) natural jurisprudential heritage of eighteenth-century British political economy. Specifically, the article attempts to map on to Hont’s thesis the Christian Stoic interpretation of Grotius and Pufendorf which has gained greater currency in recent years. In doing so, the paper argues that Grotius and Pufendorf’s contributions to the ‘unsocial sociability’ debate do not necessarily lead directly to the Scottish school of political economists, as is commonly assumed. Instead, it contends that a reconsideration of Grotius and Pufendorf as neo-Stoic theorists, particularly via scrutiny of their respective adaptations of the traditional Stoic theory of oikeiosis, steers us towards the heart of the early English ‘clerical’ Enlightenment. (shrink)

Privileging deductive first principles over inductive contingencies, I argue, contributed to the economic meltdown of late and will continue to limit the range of reasonable solutions available to solve entrenched economic problems. I cite Toulmin’s critique of scientific certainty and the rancor over the demise of the ninth planet Pluto to posit a role for rhetoric in making valid claims across all fields of study, calling for more productive uncertainty subject to vigorous argumentation.

In past decades, significant work in behavioural economics has decisively revealed the limitations of the human agency model known as Homo Economicus, whereby humans are purely driven by material self-interest. These behavioural findings are, however, far from integrated in mainstream economic theory, which builds heavily on the neoclassical tradition. Unbeknown to modern economics, Bernard Mandeville and Adam Smith already proposed a richer model of human agency in which choices also depend on the desire for social approbation. The social approbation mechanism (...) complements material self-interest and provides a more diverse toolset, which is able to explain social preferences. Mainstream economic agency confines the study of human action to an artificially-limited spectrum because it reduces society to atomistic individuals who maximise one all-purpose measure of value: utility, which is often instrumented by consumption. Collective action is therefore only sustainable where material incentives are in place, as the economic agent rides for free unless financially penalised. To explain pro-social behaviour from the standpoint of self-interest, Mandeville and Smith proposed that agents also maximise social approbation, which conveys incentives to act pro-socially because the desire for others' approval encourages compliance with social norms. The upshot for collective action is that, assuming social norms represent common interests, approval from others provides an extrinsic motive for pro-social behaviour. I formalise the mechanism by proposing a simple utility function in which agents maximise social approbation as well as material self-interest. (shrink)