Adam Smith vs. Samuel Smiles - Essay Example

? Adam Smith vs. Samuel Smiles Adam Smith was an 18th Century of logic and philosophy who had immense interests in the workings of economies all over the world, and their impact on people’s lives. Smith’s best works are exhibited in his 1776 publication followed by Wealth of Nations, which rightly addresses the notion of economic liberalism. According to Smith, this entailed a non-interference or hands-off approach by authorities/governments towards private enterprise. His postulates were geared towards advocacy for the establishment of a laissez faire trade policy both on the local and international scene. Samuel Smiles is another free thinker whose postulates on the economic wellbeing of the society heavily echoed Smith’s postulates almost a century later. Smile’s notion was based on the need for enhanced self-actualization and development, which would ultimately lead to a more vibrant individual and societal economic prosperity. Adam Smith was focused more on self-interest and Smiles focused more on morality. This paper seeks to highlight both authors’ arguments with relation to economic liberalism before and during the industrial revolution, and how their focus influenced their works. Economic liberalism can also be regarded as fiscal liberalism because it entails the freeing up or giving a free reign to all matters pertaining to financial activities both at the individual and societal level (Perry, Peden & Von Laue, 2006). The basic aim of economic liberalization is to eliminate the involvement of organizations and institutions in making economic decisions that affect people’s economies. Economic liberalization shows immense support for a market economy where the laws of supply and demand dictate commodity prices. The role of private property in the production process is also respected with regard to the role it plays in promoting enterprise. Adam Smith’s views on division of labor can be construed to be the instigator of his views on economic liberalization. Smith lived during the initial period of the industrial revolution, which exposed him to the effects and benefits of division of labor in production. Smith lauds the division of labor as the greatest contributor to the immergence and success of the industrial revolution. He attributes the age’s productive powers and increase of quantity of work to three aspects or circumstances. He argues that division of labor enhanced every worker’s ingenuity, it saved time and the great number of machines that facilitated and abridged labor, enabling man to do the work of many (Perry, Peden & Von Laue, 2006). Division of labor also enhanced what Samuel Smiles attributes to failure of society because division of labor encouraged selfishness and individualism. These attributes according to Smiles did not do much in terms of developing societal economies, but encouraged in its stead a culture that bred social vices. These vices negatively impacted on the economic development of communities and nations. Individualism and the self-centered approach towards economic liberalization that Smith advocated for during his time did not help a lot in terms of improving the wellbeing of society. Samuel smiles on the hand, lauds division of labor as a great benefactor to the development and realization of capitalistic ethics. Smiles postulates that true growth in an individual and society in general is only possible through the spirit of genuine self help at a personal level. According to Smiles, no amount of intervention from institutions and legislation can contribute to individual advancement if the individual is not willing. Too much guidance and direction from government policy only leads an individual to exist in a helpless state (Perry, Peden & Von Laue, 2006). This is because they get used to the situation where everything is done for them, and they have no control of their decision-making in life. The prosperity of a nation is dependent upon the sum of individual uprightness, industry and energy just like national failure is brought about by vice, individual idleness and selfishness (Perry, Peden & Von Laue, 2006). National prosperity is pegged on individual effort especially where a person thinks that they are acting for their own best interest. Smith forwards this notion by arguing that when an individual is tasked with improving the economic welfare of society, they are more likely to fail, than if they were doing it for their own benefit and gain. According to Smith, every individual endeavors to apply their capital to self-betterment, which inadvently predisposes them to promoting domestic industry. This translates to the promotion of public interest without the sole intention of the perpetrator towards this end. Thus, the postulate that an individual is more likely to promote public interest in pursuance of self-actualization than when purposely tasked to promote society’s welfare. This can be construed to be a factor behind Smile’s development on the theory touching on morality as a necessity in the economic prosperity of a nation and society (Perry, Peden & Von Laue, 2006). According to Smiles, the greatest that a nation or an institution can do is encourage and stimulate people to improve and elevate themselves on their own free will. This will be of more benefit to individual and society’s wellbeing than modification of policies and altering institutional implementation. Texts by Adam Smith and Samuel Smiles are in dialogue in the sense that they both focus on individual excellence and improvement as the key to a prosperous society. Smith’s text illustrates individual efforts at attaining an advantageous position in society’s commerce. This is characteristic of capitalism where individual effort is rewarded with success and prosperity unlike communist societies where individual effort is translated to societal advantage (Perry, Peden & Von Laue, 2006). Smith argues this point by giving the example of the middle class during the industrial revolution. The middle class emerged as the new leaders in business and commerce due to individual effort and a belief system that encouraged self-excellence through hard work. Every individual in this society prefers to place their capital in endeavors that will promote their interests the most. This is congruence with Smiles’s text, which lays emphasis on self-actualization, and improvement, which is the only way that society can prosper. There is also dialogue between the two authors’ text where they both address the notion of freeing up people’s potential. Through their text, they advocate for institutions that encourage individual improvement and actualization. They both illustrate a belief in the fact that individual effort and industry is the key to prosperous nations and society. When Adam Smith was writing in 1776, the industrial revolution was just starting to take shape, and most of the factors that affect domestic and international commerce were just beginning manifest. It can be said that Smith was one of those few individuals who had the insight and foresight to discern these factors and their impact on society. During Smith time, nations were focusing their efforts in trade on mercantilism. He saw this policy or approaches as detrimental to the development of society because they did not address domestic commerce. Smith’s foresight enabled him see the importance of promoting domestic industry because it would eventually translate to what mercantilism tried to achieve, but in an outdated approach. During Samuel Smile’s time in the 19th century, the industrial revolution was in its winding down stages and it was a time of international commerce and industry. The industrial revolution created a ripe environment that created opportunities for anyone who was willing to work hard. This came to be seen as a benchmark of capitalism, which rewarded those who were willing to work hard. Communism was also borne out of the industrial revolution, and it advocated for the need of collective or communal appreciation of individual effort and industry. Adam Smith’s emphasis on individuality and self-centeredness as an approach towards economic liberalization did not achieve its ultimate goal. This contributed to Samuel Smiles development of a moral theory to enhance Smith’s postulate on what could be done to improve society’s economic status. Adam Smith and Samuel Smile’s were authors who wrote about their beliefs and philosophies about the features behind successful and prosperous societies and nations. Their works echo of congruent principles even though they both lived in different times separated by decades. Personal advancement and improvement is the key to achieving individual economic security and freedom. This leads to a society that is a mirror image of the individuals it harbors. Economic liberalization is the key to a prosperous society and nation because it rewards hard work and excellence. Reference Perry, M., Peden, J. R. & Von Laue, T. H. (2006). Sources of the Western Tradition: From the Renaissance to the present. 7Th Illustrated Edition.Virginia: Houghton Mifflin. Read More