Jeffrey Schwartz, Josie Thomson, Art Kleiner, Adam Smith [Archive.org URL]

The 18th-century economic philosopher Adam Smith, best known for his foundational book The Wealth of Nations, spent his last two decades considering the problem of virtue in capitalism. The vitality of the industrializing world was based on the good faith of energetic, creative people, acting individually. But no human society had ever resisted the temptations of corruption and exploitation. How would capitalism survive? Smith said that the two obvious means, legal regulations and community censure, were not completely adequate, because they were often ill-placed, bore enormous costs, reduced productivity, and diminished entrepreneurial vitality.

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