Adam Smith’s magnum opus, An Inquiry into the Nature and Causes of the Wealth of Nations, considered the foundation stone of modern economics, marked its 250th anniversary on March 9. While celebrating the epic work, it is also worth pondering the long-standing conflict between two of Smith’s books — The Wealth of Nations (1776) and The Theory of Moral Sentiments (1759).
The “problem,” known as “Das Adam Smith Problem,” was first formulated by German economists of the Historical School, such as Wilhelm Hasbach and August Oncken, in the late 19th century. They perceived a huge contrast between the sympathetic moral philosophy of Smith’s first book and the selfishness depicted in the latter. Did Smith’s perspective really evolve over those 17 years?