??(The Wealth of Nations): ????????????

1
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• ? ?
• ????????

2
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• I. ?????--????????
• ??(The Wealth of Nations) ????????????
• ????? ???????? ( Das Adam Smith Problem)
  
• II. ??( François Quesnay )????
  ?????????
• ????????-???? (cruel and cool)
• ??

3
An Inquiry into the Nature and Causes of The
Wealth of NationsBy Adam Smith 1723-1790

• The annual labour of every nation is the fund
  which originally supplies it with all the
  necessaries and conveniences of life which it
  annually consumes

4
V. Challenges Ahead
5
According to The Wealth of Nations

• Wealth is not a fixed quantity - wealth is a
  function of labor productivity and therefore of
  people, and of the incentives which encourage
  them to raise productivity.
• Even today, some people still mistakenly believe
  that the worlds wealth is a fixed quantity, and
  where one grows richer and another grows poorer.

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Adam Smith

• Since mercantilists and colonialists believed
  that wealth was limited, they wanted the
  government to keep most of it. They established
  government-authorized monopolies, controlled by
  their friends and supporter, using the police to
  stop anyone from competing with the monopolies.

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The Wealth of Nations Specialization and
Division of Labor

• Nations have become wealthy because labour has
  become more productive.
• Labour is more productive because it is more
  specialized tasks have been divided and
  subdivided until anyone can easily learn to do
  any job and do it well.
• The division of labor saves time that is lost in
  passing from one species of work to another.
• The division of labour leads to invention, and it
  makes it easier for a worker to learn and become
  skilled at the job.

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The Wealth of Nations - Market and Capital Stock

• The extent of the division of labour is limited
  by the extent of the market.
• The more people there are involved in mutual
  exchange, the more specialized each can be.
• The accumulation of capital (stock) is also
  relevant - Labour can be more and more
  subdivided in proportion only as stock is
  previously more and more accumulated

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The Wealth of Nations - Liberalism

• Laissez Faire
• Every man, as long as he does not violate the
  laws of justice, is left perfectly free to pursue
  his own interest his own way
• A system of natural liberty a nations wealth is
  increased by whatever industry is most
  profitable, i.e. whatever industry produces the
  greatest surplus, available to support further
  division of labour.
• Therefore, the government should not try to
  direct industry into export industry, or into
  agriculture, or in any particular direction.

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The Wealth of Nations - Speculation

• Those who are called philosophers or men of
  speculation, whose trade it is, not to do any
  thing, but to observe everything and who, upon
  that account, are often capable of combining
  together the powers of the most distant and
  dissimilar objects.

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According to Adam Smith

• Self-interest is an unchangeable part of human
  nature, so it is wise to let personal incentives
  build a richer economy.
• Strong government was a great necessity,
  particularly to create and enforce laws and to
  ensure justice.

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Adam Smith

• The sovereign has only three duties
• first protecting the society from violence
  and invasion
• secondly protecting every member of the
  society from the injustice or oppression of
  every other member
• thirdly erecting and maintaining certain public
  works and certain public institutions which it
  can never be for the interest of any individual,
  or small number of individuals

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Adam Smith

• Government and the people should do what it does
  best
• ?businessmen should not control the
• justice system
• ?government should not try to run
• businesses.
• ?Monopolyis a great enemy to good
• management.

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Regarding Government

• The market works less efficiently in the
  developing economy than in the developed economy.
• The market gives better service in rich than in
  poor countries, so also the government tends to
  be better administered, has more resources, and
  is slightly less dominated by politics and
  personal advantage in decision making.
• The imperfect solution of the market could be
  better than that of the government. The
  government needs to be modernized just as much as
  the market. Also the assumption that the
  government represents the people may not hold

W.A. Lewis, The State of Development TheoryAER
(March 1984), p.4.
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According to Adam Smith

• ????
• No society can surely be flourishing and happy,
  of which the far greater part of the members are
  poor and miserable.

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According to Adam Smith

• Adam Smiths economy grows to its full
  complement of riches as permitted by its laws
  and institutions, and there it rests.

Arthur W. Lewis, 1984
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Das Adam Smith Problem

• Question raised by German Historical School
• How to reconcile altruism in Morality laid
  out vividly in Moral Sentiments of which the
  first chapter in on Sympathy, and self interest
  in Economics which is the core of Wealth of
  Nations.
• ???????????,??????????????????,?????????????,????
  ???????????

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Das Adam Smith Problem

• Chronology of Smiths teaching and writing career
• 1723 born
• 1737 Glasgow, studying Greek, Latin,
  Mathematics and Morality
• 1940 Oxford, studying Philosophy
• 1948 Edinburgh, lecture
• 1750 Lecture note on Economics
• 1751 Glasgow, Professor of Logic 1752
  Professor of Morality
• 1759 Publishing MS
• 1761 2nd ed. of MS expanding the part on
  Politics, Economics and
• Jurisprudence
• 1763 Lecturing on Law, Police, Revenue,
  and Arms.
• 1764 Turing in European continent for 2
  years and 8 months with
• Duke Buccleugh and starting to
  draft WN

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Smith Problem (cont)

• 1765.12-66.10 meeting F. Quesnay in Paris
• 3rd ed. MS, adding considerations concerning
  the first
• formation of languages
• More information on taxation in America, 4th ed
  MS
• 1776 Publication of WN
• 2nd ed. WN
• 5th ed. MS
• 3RD ed. WN
• 1786 adding Introduction and the final edition
  of WN
• Honorable principal of Glasgow U.
• intensive revision of MS, adding sec. III, Ch.3
  
• 1790 the final 6th ed. of MS

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Let Smith Answer the Question

• Smith has constantly and interweavingly revised
  MS and WN.
• In the last paragraph of the present work, I
  said, that I should in another discourse
  endeavour to give an account of the general
  principles of law and government and in what
  concerns police, revenue, and arms, and whatever
  else is the subject of law. In the Enquiry I
  have partly executed this promise at least so
  far as concerns police, revenue, and arms.
  Advertisement, MS.
• ???(???)?????,??,??????????????????,????????????
  ,??????????,???????????????????????,??????????????
  ???

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Let Smith Answer the Question

• In Scotland then, moral philosophy covers
  ethnology, morality, jurisprudence, and politics
  including political economy.
• What purpose isthe pursuit of wealth?
• what are the advantages which we propose by
  that great purpose of human life which we call
  bettering our condition? To be observed, to be
  attended to, to be taken notice of with sympathy,
  complacency, and approbation
• ??????????????,?????????
• ???????????????????????????????????????,????,????,
  ????,??????

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Let Smith Answer the Question

• It is the vanity, not the ease, or the pleasure,
  which interests us. But vanity is always founded
  upon the belief of our being the object of
  attention and approbation.
• the eye is larger than the belly, The capacity
  of his stomach ( the land lord )bears no
  proportion to the immensity of his desires, and
  will receive no more than that of the meanest
  peasant.
• ?????,?????????????,??????????????????????????????
  ???
• ?????????????????????????,???????????????

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Let Smith Answer the Question

• In what constitutes the real happiness of human
  life, they are in no respect inferiour to those
  who would seem so much above them. In ease of
  body and peace of mind, all the different ranks
  of life are nearly upon a level, and the beggar,
  who suns himself by the side of the highway,
  possesses that security which kings are fighting
  for.
• ????????????????????,????????????????????????????
  ??,??????????????????????????????,????????????????
  ???????

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Let Smith Answer the Question

• When Providence divided the earth among a few
  lordly masters,They are led by an invisible hand
  to make nearly the same distribution of the
  necessaries of life, which would have been made,
  had the earth been divided into equal portions
  among all its inhabitants
• ?????????????,(????????????????)??????,?????????
  ?????????????????????????

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Let Smith Answer the Question

• On government The man of system, is apt to be
  very wise in his own conceit, and is often so
  enamoured with the supposed beauty of his own
  ideal plan of government.
• ????????????,????,???????????????????????

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(No Transcript)
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The Theory of Moral Sentiments1759Chapter I.
Of Sympathy

• How selfish soever man many be supposed, there
  are evidently some principles in his nature,
  which interest him in the fortune of others, and
  render their happiness necessary to him, though
  he derives nothing from it, expect the pleasure
  of seeing it.
• ??????????,??????????,??????????,????????????,????
  ???,???????

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• ?????????????????????????????????????????????????

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Part 1 ?? Wealth

• ?????,???????,???????,??????????
• ?????????,?1?????????????????????
• ?????????????,??????????

?1?????????,?????????,?WN, V.I.f.50 781-5?
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Part 1 ?? Wealth

• ??????????,?????,???,???????????????????
• ?????????????????
• ????????,???????????,????????????,???????????

31
Part 1 ?? Wealth

• ?????????????????????,??????????????
• ?????????????,?????????3
• ?????,??????????????????

?3?WN, IV.ii.11 456?
32
Part 1 ?? Wealth

• ???????????????????????,??????????????????????
• ??????????????
• ???????????????????

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Part 1 ?? Wealth

• ???????(???????),???????????,??????????????,?????
  ???????????,???????4 ????????????,???????????
• (???)??????????
• ????????????,????????????????????

?4???????lt????gt??TMS, IV.I.8 181?
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Part 1 ?? Wealth

• ???????????????(To own or to be)
• ??????????,?????????????,????????5
• ?????????????????????????????,????????????????????
  ???6

?5??????????????????(Paradise Lost, 1674),
Book 1, Line 253? ?6?TMS, III.3.31 149?
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Part 1 ?? Wealth

• ????????????,?????,??????????????,??????????,????
  ?????????7
• ??????????,??????,???????8
• (???)???????????,???????

?7?TMS, III.3.31 150? ?8??????????????????Es
say on Astronomy(EPS, IV.34, p.75)?,?????????????
???????????????????(Stewart, EPS, p.275)?
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Part 2 ?? Transformation

• ???????????????,???????????,????????????????????
  ????,???????
• ???????,?????????!
• ????????????????

?9 ??????,????,????????????????????,????????????
???,???,???????????(TMS, iii.2.6-7 116-117)?
37
Part 2 ?? Transformation

• ???????????,???????????????????10
• ????????????,???????,???????????11

?10?TMS, I.I.1 7? ?11??TMS, I.ii.2.1 32?
38
Part 3 ?? Virtue

• ???????????????!?????????????????????
• ????,??????????????????????????13
• ??????????????????(?????????),????,???????????????
  ??

?13???????????????TMS, I.I.1.5 10?
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Part 3 ?? Virtue

• ??????,??????????????????
• ?????????????
• ??????????????????????,????????14
• ?????,????,????(??)??????????15

?14?WN, IV.ii.6 454? ?15?J.S. Coleman,
Social Capital in the Creation of Human
Capital, American Journal of Sociology, 94
(Supp1.), 1988, pp. s95-s120?
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Part 3 ?? Virtue

• ?????????????,?????????????
• ?????????,???????????,??????????,?????????????
• ???????????,????????????????

41
Part 3 ?? Virtue

• ??????????????????????????????????????????????????
  ??????????16
• ???????????, ?????????????????

?16?TMS, VI.I.14 216?
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Part 3 ?? Virtue

• ???????????,?????????????????????17
• ????????????,????????????????

?17???????1689???????????????????????????
43
II. ??( Françis Quesnay )????

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François Quesnay1694-1774

• ????(Physiocrats)?????(Agricultural system)
• ???????,?1755??????????,62??????????

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Quesnay

• You recognize but one rule of commerce that is
  to allow free passage (laissez passer) and
  freedom of action (laissez faire) to all buyers
  and sellers whoever they may be.
• ???????????????????????

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Quesnay

• ???(Tableau Economique)????
• ???,???????????????????????????
• ???,????????????????????
• ??????????????????????????????,????,???????????

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Quesnay

• ????
• Money resembles the blood of human body.

48

• ??????????
• ??????????????

Delivering oxygen, nutrients, hormones...
Red blood cells
White blood cells
Looking out for signs of disease and producing
antibodies and attacking
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V. Challenges Ahead
?????????
?????
Investment Proposals
?????
???? ????
Resource Deprivation
(RBC)

(WBC)
???? ??
?? ?? ??
Inefficient Allocation
Case approved
????
Resource Acquisition/Allocation
Efficient Allocation
50
III. ? ?

• ????????
• ???????