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Subject: Adam Smith

Adam Smith (baptised 16 June 1723 – 17 July 1790 [OS: 5 June 1723 – 17 July 1790]) was a Scottish moral philosopher and a pioneer of political economics. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations. The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Adam Smith is widely cited as the father of modern economics.[1][2]
Smith studied moral philosophy at the University of Glasgow and Oxford University. After graduating he delivered a successful series of public lectures at Edinburgh, leading him to collaborate with David Hume during the Scottish Enlightenment. Smith obtained a professorship at Glasgow teaching moral philosophy, and during this time wrote and published The Theory of Moral Sentiments. In his later life he took a tutoring position which allowed him to travel throughout Europe where he met other intellectual leaders of his day. Smith returned home and spent the next ten years writing The Wealth of Nations (mainly from his lecture notes) which was published in 1776. He died in 1790. (Wikipedia 2010)

This is a 'game-changer'

Economic recovery may wait until 2016

Economic systems and institutions tend to gradually corrode and become increasingly inefficient and unstable

The current economic crisis, which started with the market crash of 2008, is a ‘game-changer’ that requires effective leadership with a firm grasp of economic reality and a willingness to introduce sensible bipartisan reforms in many areas of financial markets.

Unfortunately, these conditions are unlikely to be met before 2016. In the meantime, history suggests that there are likely to be many false rallies and dashed hopes before true recovery begins.

What would Adam Smith say?

Soviet-style capitalism on Wall Street

Casino at Monte Carlo: Economic Game Theory and Monte Carlo Methods were based on the presumption that players would have some skin in the game

Most corporate executives of giant companies today are, in actuality, mere employees (‘workers’ in communist jargon) and are not capitalists or entrepreneurs at all.

Their extraordinary remuneration schemes are provided without executives having employed or having risked any of their own capital and is often paid, even as a corporation slides into bankruptcy.

Adam Smith recognized self-interest as a useful trait, but one that should not be allowed to override the nobler virtues.

Caritas en Veritate

Adam Smith, the Pope and the Harvard Business School

Pope Benedict XVI favors capitalism.

Pope Benedict XVI, in the encyclical ‘Caritas en Veritate’, writes in favor of ethical capitalism. This is a position very similar to that of Adam Smith who stressed the importance of morality in business.

The contrary position is taken by the Harvard Business School that teaches that there are ‘no right, no wrong answers’ through its famous case method.

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2010-08-13 16:01