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)

This essay analyses the ethical importance and religious implications of ‘the man within’ in Adam Smith's moral philosophy. Not introduced until the second edition of Theory of Moral Sentiments, ‘the man within’ appears as the internalization of the impartial spectator. With the invention of the man within, Smith was able to explain how moral agents pursue virtues and behave morally beyond immediate and quotidian concerns with either praises or blames from society. Having complied with the general dictates of the impartial (...) spectator with conscience, humans become morally autonomous individuals whose moral judgements are derived from constant dialogues with the man within in an ethical microcosm within their breasts. The man within possesses a transcendent nature that preempts social judgements. Because of that transcendent nature, Smith also denominated the man within as ‘the substitute of Deity’. This essay also argues that even conscientious and virtuous individuals can be wronged and misjudged by socie... (shrink)