Dan Klein on The Theory of Moral Sentiments, Episode 5--A Discussion of Parts III (cont.), IV, and V

Customs & Morals

The discussion on customs and morals highlights Adam Smith's nuanced view on how societal norms shape moral sentiments. Dan Klein explains that while customs and fashions can influence behavior, they rarely corrupt the core moral fabric of society. He argues that even when customs go astray, such as in the case of slavery, they do not fundamentally alter the moral sentiments of a community 1. Russ Roberts adds that Smith's worldview suggests that moral faculties guide us to promote happiness, aligning human actions with a divine plan 2.

By acting according to the dictates of our moral faculties, we necessarily pursue the most effectual means for promoting the happiness of mankind.

--- Russ Roberts

This perspective underscores the resilience of moral sentiments against the transient nature of customs and fashions.

   

Economic Regulations

Smith's critique of economic regulations reveals his skepticism towards government interventions. Dan Klein argues that regulations like occupational licensing and minimum wage laws are coercive and often misaligned with moral virtues 3. He suggests that these interventions can lead to misguided loyalties and opinions, deviating from the virtues Smith valued. Russ Roberts challenges this by highlighting Smith's appreciation for public works and the role of government in promoting public welfare 4.

The same principle, the same love of system, the same regard of the beauty of order, of art and contrivance frequently serves to recommend those institutions which tend to promote the public welfare.

--- Russ Roberts

This tension between individual liberty and public policy reflects the complexity of Smith's views on governance.