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CONTENTS
The author 8
Foreword by Alan Peacock 9
Acknowledgements 12
Summary 13
Introduction by Gavin Kennedy 15
1 Why Adam Smith is important 25
The old view of economics 25
The productivity of free exchange 26
Social order based on freedom 27
The psychology of ethics 28
Self-interest and virtue 29
Human nature and human society 29
2 Smith’s life and career 31
Kirkcaldy and Glasgow 31
Oxford and incentives 32
Early lecturing career 33
Travels 34
The Wealth of Nations 35
Commissioner of Customs 36
3 The Wealth of Nations 37
The book’s broad themes 37
Production and exchange 39
The accumulation of capital 52
The history of economic institutions 57
Economic theory and policy 58
The role of government 63
The Wealth of Nations today 72
4 The Theory of Moral Sentiments 73
Main themes of the book 73
Natural empathy as the basis of virtue 74
Reward, punishment and society 76
Justice as a foundation 78
Self-criticism and conscience 79
Moral rules 80
Attitudes to wealth 81
Self-improvement 82
On virtue 84
The constitution of a virtuous society 85
5 Smith’s lectures and other writings 87
The unifying theme 87
Smith on the philosophy of science 88
The psychology of communication 91
Smith on government and public policy 93
Conclusion 98
6 A digression on the invisible hand 99
The rich make work for the poor 99
Unintended consequences of human action 101
A self-perpetuating system 102
Individual action and social outcomes 103
7 Some of Adam Smith’s famous quotations 105
8 Select bibliography 115
Commentary: the relevance of Adam Smith today 118
Craig Smith
About the IEA 124
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