ADAM SMITH: EGOISM AT THE SERVICE OF THE ECONOMY

Abstract

Background. Defenders of scientific economics will enthusiastically look to Adam Smith's writings for arguments in favor of free trade to bolster the metaphor that heralds later formulations of general equilibrium theory, while his critics will be just as tenacious in seeking out Adam Smith's highly debatable assumptions and methods that call into question the discursive chain of political economy. The aim of this article is to situate Adam Smith's thesis of liberalism and his philosophy of egoism in its historical context, in order to better understand the workings of our modern economy and its future, taking note of the fact that Adam Smith sought to transpose certain anthropological principles to the sciences in general, and to economics in particular.

Methods. The author has adopted classic scientific research methods. First, a historical method is used to provide a portrait of Adam Smith and the key events in his life that shaped his vision of economics. Then, a descriptive method focusing on an overview of Adam Smith's main theses on egoism and its interaction with economics. Finally, an analytical method, based on a detour through Adam Smith's anthropology and moral philosophy, will enable us to better understand why a society driven by self-interest can survive and even prosper.

Results. The article concludes that, for Adam Smith, the "egoistic" motive that drives each individual to constantly improve his or her economic situation generates beneficial effects at the national level and leads to the best possible economic organization by achieving the general interest through competition. In this respect, egoism will always be the main force organizing the economic activities of any society. Natural equilibrium therefore results from the interaction of all individuals in the economy and the confrontation of their interests, without the need for any regulatory intervention, because all individuals, in one way or another, are selfish.

Conclusions. For over a century, Adam Smith's thinking on egoism and its role in the economy has been consciously or unconsciously decontextualized to serve the ideology of free-market advocates. It's true that Adam Smith's famous metaphor of the "invisible hand" alluded to the harmonious functioning of the "market". In other words, the selfishness of each leads to an equilibrium through the satisfaction of his or her self-interest. We can't deny that, for Adam Smith, liberalism is still based to a certain extent on the principle of a natural equilibrium resulting from the way we all play our part in the economy and the confrontation of our interests.