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26 Classics
http://www.cfe.org
AdamSmith
Talksabout
TrueMarket
Economy
ByKangYoung-joon
however,theycancomprehendSmith’sideasinhisotherbook,
‘The Theory of Moral Sentiments,’ they may change their
L
AssociateEditorofTheory&CritiqueSection
mind.
astyear,asystemcalled‘profitsharing’wasproposed
The keywords of ‘The Theory of Moral Sentiments’ are
by Chung Un-chan, the former Prime Minister of
‘sympathy,’‘impartialspectator,’‘wisdom’and‘weakness.’
South Korea, to alleviate the polarization between
According to Smith, human beings have a natural tendency
large and small companies through unfair subcontracts.
tocareaboutthewell-beingofothersfornootherreasonthan
Although the commission on shared growth for large and
the pleasure they receive from seeing others’ happiness. He
small companies came up with a new, softer name for its
calls it sympathy. This concept can be extended to our own
sharedgrowthobjective,‘cooperationprofitdistribution,’itis
sentiments. If we sympathize with the feelings of others, we
stillcontroversialbecausethetheideaofexcessprofitsharing
judge that their behaviors are just. If we do not sympathize,
isconsideredtobeagianstmarketprinciples.Whatisthetrue
wemightjudgethattheirbehaviorsareunjust.Indoingso,our
market economy? Readers can think about the true market
ownactionsareself-judgedastowhethertheyarejustornot.
economybylookingatAdamSmith,whoistheauthorof‘The
Smithcallsitanimpartialspectator.
TheoryofMoralSentiments.’
Ifoneactswithanimpartialspectator’sapprobation,thathis
actionsarejustandhecanbeconsideredawiseman.Contrary
to this, if someone acts without an impartial spectator’s
approach, their actions are unjust and they can be considered
≪AdamSmithand‘TheoryofMoralSentiments’
Smithisknownforhis‘invisiblehand’theoryandiswidely
a weak man. Dome Dakuo, who wrote ‘Adam Smith,’ a book
cited as the father of modern economics and capitalism. He
rewriting ‘The Theory of Moral Sentiments’ and ‘Wealth of
is considered to be the embodiment of personal selfishness
Nations’withhisinterpretations,citesSmith’sideathatpeople
andunconstrainedcompetitionamongthepeople.Iftheyonly
can set the standards of moral issues by sympathizing as an
read ‘An Inquiry into the Nature and Causes of the Wealth
impartialspectator.
of Nations (Wealth of Nations),’ they may draw that idea. If,
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