EP 52: Shelf Life #11 The Smith Conversations

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Published in 1759, 'The Theory of Moral Sentiments' is Adam Smith's first major published work, based on his lectures at Glasgow University. The book argues that morality is driven by humanity's natural sociability and the need for approval from peers, rather than by rational calculation or innate moral sense. Smith introduces key concepts such as sympathy, the impartial spectator, and the invisible hand, which explain how individuals judge the conduct and character of themselves and others. The work delves into the emotional and social aspects of human behavior, highlighting the role of emotions like pity and compassion in shaping moral sentiments and behaviors.

In 'The Affluent Society,' John Kenneth Galbraith examines the economic and social landscape of post–World War II America. He argues that while the private sector has become incredibly wealthy, the public sector remains underfunded and neglected, leading to significant social and economic disparities. Galbraith critiques the 'conventional wisdom' that prioritizes economic growth and consumer spending over public investment in essential services like education, healthcare, and infrastructure. He introduces concepts such as the 'dependence effect,' where consumer demands are created by the process of satisfying them, and advocates for policies to eliminate poverty, invest in public schools, and enhance public amenities. The book is a seminal work in the field of public policy and political economy, offering a prescient and insightful analysis of the contradictions of affluent societies.

Robert Skidelsky's book provides a historical and contemporary analysis of economic thought, focusing on the roles of money and government. It critiques the dominant view that these elements should play minor roles in economic life, arguing instead for their central importance in addressing economic instability and inequality. The book explores the evolution of economic theories, particularly the rise and fall of Keynesian economics, and proposes a new macroeconomic framework.

In 'The Ascent of Money', Niall Ferguson explores the human story behind the evolution of finance, from the origins of money in ancient Mesopotamia to the latest financial upheavals. Ferguson argues that finance is the foundation of human progress and reveals financial history as the essential backstory behind all history. The book covers key financial institutions and concepts, such as the invention of banking, the development of bonds and stock markets, and the role of insurance and real estate. It also delves into the impact of financial systems on historical events and the recurring theme that every financial bubble eventually bursts.

In 'The Power of Gold: The History of an Obsession', Peter L. Bernstein delves into the captivating story of gold, tracing its influence from ancient civilizations to modern times. The book explores how gold has shaped human history, often leading to both grand achievements and tragic consequences. Bernstein examines the role of gold in mythology, economics, and politics, revealing its profound impact on cultures worldwide.

Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics. The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit. It emphasizes the division of labor, the accumulation of capital, and the importance of free markets. Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces. The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.