Adam Smith Markets and Morality

Question 1

How does morality foster markets?

Answer 1

in markets we have repeated exchanges with each other, Smith says if there weren’t repeated dealings we’d be more likely to cheat, as markets expand and there are more repeated dealings we won’t be inclined to cheat because we’d be losing business - an example of how markets foster morality. When there is no justice society crumbles into atoms.

Question 2

what is the basic need that motivates and shapes morally driven behavior?

Answer 2

the innate desire for the approbation of others

Question 3

what is approbation based on?

Answer 3

our desire for good moral conduct and wanting good rank. it comes from wealth, the desire to accumulate wealth leads to development of markets (can also lead to morally questionable behaviors)

Question 4

commercial societies are fundamental for what?

Answer 4

fostering moral capital, because there is more competition in a commercial society there are more jobs and vocational spheres and therefore even self interested behavior leads to justice behavior. Basically a commercial system offers enough opportunities so people don’t have to be corrupt while being self interested

Question 5

what does capitalism foster?

Answer 5

self command - because competition is more challenging than a monopoly which creates a privilege caste which can’t create self command. Commercial societies create surplus, in order to purchase that surplus we have to have self command to overcome laziness and impulsiveness. Smith thought men tend to lazy.

Question 6

commercial economy instils what good habits?

Answer 6

attention to detail, orderliness, reliability and precision

Question 7

why are we frugal?

Answer 7

because we have a passion for money

Question 8

how does capitalism transform men?

Answer 8

transformed to pursue business profits instead of only pleasure. increased importance of commercial class increases parsimony and frugality.

Question 9

what does poverty induce?

Answer 9

heinous crimes

Question 10

what happens when wealth accumulates rapidly?

Answer 10

it trickles down and then there is less poverty and crime

Question 11

is virtue rewarded in a market system?

Answer 11

Smith says strong yes!

Question 12

can markets undermine morality?

Answer 12

yes

Question 13

how can markets undermine morality?

Answer 13

1. approbation for wealth can create greediness and corruption.
2. large amount of wealth is likely to corrupt
3. monopoly or special privilege
4. division of labor makes people stupid
   excessive profits don’t make people moral
5. commercialization undermines family (no longer as closely tied)
   6.