Issue 143 Moral Capitolism August 15, 2013

I have read Adam Smith's Theory of Moral Sentiments or at least a condensed version. It was designed to be the first book in a series of four with the Wealth of Nations being the remaining three. Basically it analyzed human behavior and conduct in such a way that it acted as a manual for how laissez-faire capitalism is supposed to function in a moral society, or at least one that is supposed to follow certain morals. I will now summarize those morals as best I can as it is the blue print for a moral and just society under capitalism.

True Self Interest: This true form of self interest is that of wanting to be admired and loved. Usually it is the path of least resistance and thus is generally immoral. A modern example would be the people on the show of the Jersey Shore who get drunk and sleep around for the entertainment of others. Another would be the likes of Paris Hilton and her ilk who get famous for sex videos. Those are the easy ways to become rich, but are ultimately soulless. True fortune comes from hard work and determination. True blood sweat and tears are shed in the creation of riches, and as such goes unnoticed and usually is never paid attention to. The true self interest to get rich is to benefit oneself without harming others. Instead your work is the basis for others to build upon and succeed such as inventions like the car and the factory system by Henry Ford and the light bulb and telephone by Thomas Alva Edison. Each invention was built upon to lead others to success. Variations of the car, telephone and more were used and improved upon. But few remember those humble origins or the inventors themselves save we choose to remember. Everyone benefits in a true self interested society where getting rich off of your own hard work leads to others building upon it and getting rich as well. As such, the poor in modern day America have an equivalent wealth to the kings and queens of the middle ages. That is what it means to have a true capitalistic society, where the poor do not starve and everyone is risen up through each new invention and improvement.

What not to do: Rules to follow in this system are simple. Do not do anything that would make you despised by your self, your family, your friends and society. Basically, be aware at all times you are being watched and that what you do reflects those who raised you, who you hang out with and the community you come from. You do not embarrass them ever. Sure you can challenge the social norms like Elvis Presley did with his rock'n roll, and even change how society does things despite resistance such as the internet. The goal is to benefit society through your work, not using people as stepping stones. As such fraud or any form of lying is abhorrent. It leads to people despising one another and even theft. If fraud is the norm, then honest business becomes impossible and everyone suffers the cost whether that is through the price of goods, or even the inability for business to even be productive. Next is theft. Unfair deals and out right bullying are an absolute negative. Again it harms business, productivity, and the people who would have benefited from your labor. How would it make you feel to be pushed out of the market place by a competitor, not because your product is inferior, but because your product was superior and you were crushed by a more powerful opponent with an inferior product? This is what happens in bad deals, especially when government supports one business over another. It destroys businesses, and puts people on the unemployment line. If there was no such bullying, then small business could grow with the sole reason for failing or extinction being that they had a poor business model, or they could not adapt. That is a true and fair system where you are free to fail or choose to be bought out. By following the moral rules of not wanting to be looked down upon by those you care about and society as a whole it becomes much harder to fall to the human condition known as greed. Basically factor into your business model how people will think of you when you and your business do something. There is a reason why businesses avoid firing workers unless it is absolutely necessary, and even then, they may very well try to hire those workers back if possible.

Conclusion: There is much more to Adam Smith's Theory of Moral Sentiments. It discusses anger and revenge. How people want to punish those who wrong them, but are unsatisfied if they are punished for a different wrong. It discusses how society values justice, generosity and other aspects of admiration in contrast to those that society despises like fraud, falsehood and violence. It looks to understand the overall human condition to such a point that society can govern itself so long as morality is kept intact. Something that is arguably missing for people today. We think of what the consequences are before and after we act with a bias toward our own behavior, but never forget your moral code. If you do that, then capitalism will rarely turn back toward greed and envy, the human conditions that plague every society no matter what form it comes in.

Maybe if we taught morality in schools, those that we all share, our society may better than it is now.  Perhaps if people stopped to think how their actions would not just impact themselves, but how it would impact those around them they may be less likely to commit a foolish act.  Maybe it is wishful thinking, but surly it is better than allowing the status quo of selfishness and foolishness to continue.  Better than corruption being supported by a government that has helped to ruin fair play and equality in the market place.  And perhaps better than the false capitalism we have now.