Adam Smith's Theory of Moral Sentiments

Before he wrote about economics, Adam Smith, professor of moral philosophy at Glasgow, published The Theory of Moral Sentiments in 1759. The book opens by arguing that however selfish a person may be, there are principles in human nature that make us care about others' fortunes. Smith called this capacity sympathy: our ability to imagine ourselves in another's situation and share, in some degree, their feelings.

We learn to judge our own conduct by imagining an 'impartial spectator', a fair-minded observer within us who sees our actions as others would. Conscience, in this view, develops through social life. Smith also warned that admiring the rich and powerful while neglecting the poor corrupts our moral sentiments. Reading this book alongside The Wealth of Nations challenges the popular image of Smith as a prophet of pure self-interest; he saw markets operating within a society bound by moral feeling, justice and law.