Adam Smith on Self-interest

Adam Smith extolled various virtues including benevolence in his The Theory of Moral Sentiments, although he focused primarily on self-interest in The Wealth of Nations. Whereas human nature as discussed in both works is compatible theoretically, Smith, in his narrative, described different aspects of human nature in each work. However, the difference in Smith’s descriptions of human action in The Theory of Moral Sentiments and The Wealth of Nations is not actually a conflict between morality and economy. Economic behavior is based on a jurisprudential framework in which one can protect one’s property, For Smith, protecting one’s property is the basis of natural rights and is the foundation of social relationships in political economy; although individuals prefer voluntary donation and hospitality, these virtues are not the basis of social existence, which is necessary for protecting one’s property. Based on the protection of one’s property, one can pursue self-interest. As a result, Smith’s Lectures on Jurisprudence is the key to understanding the connection between The Theory of Moral Sentiments and The Wealth of Nations. Indeed, Smith regarded The Wealth of Nations as a part of his jurisprudence. His jurisprudence was based on The Theory of Moral Sentiments. If we understand the relationship among the three works, we can more properly understand the different human descriptions of human nature in the three works more properly. Through this understanding, we can perceive the foundations of economic behavior.