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Sympathy Grounds Moral Order
- The Theory of Moral Sentiments argues humans possess sympathy alongside self-interest, forming the moral basis for social life.
- Smith treated this moral theory as central throughout his career, not merely a youthful exercise.
Mercantilism Versus Free Trade
- Smith attacked mercantilism, the idea that national wealth comes from hoarded gold and export surpluses.
- He argued instead for freer trade and that protectionist restrictions harm national prosperity.
Division Of Labour Multiplies Output
- Smith used the division of labour (the pin-factory example) to show specialization multiplies output and sparks innovation.
- Occupational subdivision drives the growth of manufacturing and sustained economic development.