The document discusses Adam Smith and his two major works, The Theory of Moral Sentiments and The Wealth of Nations. It argues that while The Wealth of Nations is seen as the foundation of capitalism, The Theory of Moral Sentiments focused more on human relationships and morality, and provides a framework for "sustainable capitalism." The document outlines the key principles from each work, including self-interest, the invisible hand, consumption, and how resources affect human well-being. It calls for leading with a renewed focus on both Smith's economic and moral philosophies.

1. The SustainabilistView of Capitalism
Leading With a Renewed "Invisible Hand”
Nils-Michael Langenborg
Founder & Executive Director
The Sustainable Adam Smith
@GreenAdamSmith
nils-michael@thesustainableadamsmith.org
October 7, 2013

2. Who is Adam Smith?
Born June 16, 1723
Died July 17, 1790 (age 67)
Scottish social philosopher
Collaborated with David Hume
Part of the Scottish Enlightenment
Professor of Moral Philosophy at University of Glasgow
Pioneer of “political economy” (the study of production)
Lived with his mother his entire life

3. What did Adam Smith write?
1776
1759

4. Four Key Principles; One Shared
Theory of Moral Sentiments
“self-love”
“man w/in the breast”
“approbation”
“the invisible hand”
Wealth of Nations
“consumption”
“division of labor”
“self-interest”
“the invisible hand”

5. The Wealth of Nations
➡ An Inquiry into the Nature and Causes of
the Wealth of Nations
➡ Foundation of free market capitalism
➡ Four basic principles emerged
“consumption”
“division of labor”
“self-interest”
“the invisible hand”

6. 1. Consumption
“Consumption is the sole end
and purpose of all production;
and the interest of the producer ought to
be attended to only so far as it may be
necessary for promoting that of the
consumer.”

7. 2. Division of Labor
“The greatest improvement in
the productive powers of
labour… seem to have been the
productive effects of the
division of labour.”
1 pin = 18 different steps
1 man = 20 pins a day
10 men = 4,800 pins a day/each; 48,000 vs. 200 pins/day

8. 3. Self Interest
“It is not from the
benevolence of the butcher,
the brewer or the baker, that
we expect our dinner, but
from their regard to their own
interest.”

9. 4. Invisible Hand
“…he intends only his own gain,
and he is in this, as in many other cases,
led by an invisible hand to
promote an end which was no
part of his intention.”

10. The CapitalistView of Capital
Financial
Natural
Human
“Consumption is the sole end and purpose of all production”
Will we
make money?
Do we have the
resources?
Who will we
get to buy it?
-- Wealth of Nations (1776)

11. Isn’t there more to Adam Smith?

12. TheTheory of Moral Sentiments
➡ Published 1759 (17 years before WN)
➡ Might be the foundation for leading
“sustainable capitalism” into the future
➡ Four basic principles emerged
“self-love”
“man within the breast”
“approbation”
“the invisible hand”

13. 1. Self-Love (The Impartial Spectator)
“When the happiness or misery of others
depends in any respect upon our conduct,
we dare not, as self-love might
suggest to us, prefer the interest of
one to that of many.”

14. 2. Man WithinThe Breast (self-command)
“It is he who, whenever we are about to act
so as to affect the happiness of others, calls
to us, with a voice capable of astonishing the
most presumptuous of our passions, that we
are but one of the multitude, in no
respect better than any other.”

15. 3.Approbation (approval)
“In the steadiness of his industry and frugality,
in his steadily sacrificing the ease and
enjoyment of the present moment
for the probable expectation of the
still greater ease and enjoyment of
a more distant but more lasting
period of time...”

16. 4.The Invisible Hand
“They are led by an invisible hand to
make nearly the same distribution
of the necessaries of life, which
would have been made, had the
earth been divided into equal
portions among all its inhabitants,
and thus without intending it, without knowing,
advance the interest of society, and
afford means to the multiplication
of the species.“

17. The SustainabilistView of Capital
Natural
Human
Financial
“The produce of the soil maintains nearly that number of
inhabitants which is it capable of maintaining.“
How does it
effect us?
Do we have the
resources?
How do we
value it?
-- TheTheory of Moral Sentiments (1759)

18. The Necessaries of Life
1. Family (population)
2. Food & Shelter (the basics)
3. Contribution (aka “work”)
4. Capital (natural and human)
5. Health (personal and environment)
6. Exchange (currency)
7. Technology (as enabler of others)
Natural
Human
Financial

19. A Necessary of Life
Food
Natural
Human
Financial
“To make nearly the same distribution of food had the earth
been divided into equal portions among all its inhabitants and thus
afford means to the multiplication of the species.”
How does it
effect us?
Do we have the
resources?
How do we
value it?

20. Nils-Michael Langenborg
Founder & Executive Director
The Sustainable Adam Smith
@GreenAdamSmith
nils-michael@thesustainableadamsmith.org
October 14, 2012
Leading With Two Hands
Capitalist
Sustainabilist