How does humanity and morality鈥攕pirituality, really鈥攆it into an economic system? To most people, spirituality and economics are completely separate subjects.
I鈥檓 an economist, so it surprised me when I learned that the first book written by the 18th Century Scottish economist Adam Smith, widely considered to be the father of modern economics, was听.听It was published seven years before his magnum opus听The Wealth of Nations,听which founded modern economic theory and virtually invented the idea of the free market.It never occurred to me that morality might be part of his philosophy.
Every economist studies听The Wealth of Nations,听and most will tell you that Adam Smith鈥檚 work is all about the science of making wealth. His ideas have formed the guidelines for so many economists, and his words are still the accepted authority on the subject. His influence is still felt and his assumptions are still the foundation of economics.
But Adam Smith certainly recognized the inherent danger of wealth, even as he provided ideas for generating it:
鈥淭his disposition to admire, and almost to worship, the rich and powerful, and to despise or, at least, neglect persons of poor and mean conditions, though necessary both to establish and to maintain the distinction of ranks and the order of society, is, at the same time, the great and most universal cause of the corruption of our moral sentiments.鈥�
One of the most prevalent concepts in economy, and one of Smith鈥檚 most significant assumptions, was the concept of the 鈥淚nvisible Hand,鈥� which brooked no interference from government in the economic marketplace鈥攂ecause Smith鈥檚 invisible hand would solve the problems, balance supply and demand and also fix prices in an unregulated economy. Smith has thus been called the founder of 鈥渓aissez-faire capitalism,鈥� and denigrated for his lack of a moral component in his economic theories.
But if you combine this 鈥渋nvisible hand鈥� idea with Smith鈥檚听Theory of Moral Sentiments, where he says that human beings have a natural tendency to care about the well-being of others, you get a different picture of this conceptual framework:
Smith鈥檚 quotations indicate that he strongly believed in morality. He discussed the welfare of the individual, saying it depends on the welfare of all: 鈥淣o society can surely be flourishing and happy,鈥� he wrote in听Moral Sentiments, 鈥渙f which the far greater part of the members are poor and miserable.鈥�
罢丑别听, the international governing body of the Bah谩鈥櫭璼, recently reminded us of the same important point:
鈥淭he welfare of any segment of humanity is inextricably bound up with the welfare of the whole. Humanity鈥檚 collective life suffers when any one group thinks of its own well-being in isolation from that of its neighbours鈥� or pursues economic gain without regard for how the natural environment, which provides sustenance for all, is affected.鈥� 听
Smith himself said:
听鈥淭o feel much for others and little for ourselves; to restrain our selfishness and exercise our benevolent affections, constitute the perfection of human nature.鈥澨�
I am so grateful that I discovered the moral side of economics鈥攁nd how I wish more economists would explore it too. We can talk about this in our universities, and make it an essential part of economic studies to learn听the relationship between morality and economics.听
Morality and economics to me have to balance each other rather than competing for organizing and governing economics. They need each other to be complete.
Badi Shams听is a Baha'i and a mystic at heart whose听field of interest is in economics. He has published a compilation "Economics of the Future", and also more recently the book "Economics of the Future Begins Today". He is retired from the educational system. You can read more of Badi's materials on his website听
You can read more articles on our interfaith blog, Spiritually Speaking,
* This article was published in the print edition of the TImes Colonist on Saturday, June 22nd, 2019
Photo of bike by听听on听
