A Realist Political Economy and Moral Philosophy: Smith and Mittermaier

In the Theory of Moral Sentiments, Smith argued against the account of human nature which views moral sentiments as deriving from self-love. This paper emphasises that Smith’s understanding of human nature was not that it was either selfish or benevolent. Human nature consists of the ability to be either or, and the three powers of the mind actualise this ability. The powers of the mind are will, intellect, and memory, to which correspond respectively the offices of self-command, sympathy, and the impartial spectator. The system of sympathy is an example of what Mittermaier calls an ex-ante fact and allows for a real distinction between vice and virtue. Other distinctions important to Smith include production versus predation and market price versus natural price. This paper develops a model that brings together these real distinctions. It demonstrates the complementarity of the Theory of Moral Sentiments and the Wealth of Nations.