Adam Smith s Equality and the Pursuit of Happiness
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1 Adam Smith s Equality and the Pursuit of Happiness
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3 John E. Hill Adam Smith s Equality and the Pursuit of Happiness
4 John E. Hill Curry College Milton, Massachusetts, USA ISBN ISBN (ebook) DOI / Library of Congress Control Number: The Editor(s) (if applicable) and The Author(s) 2016 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Cover illustration: Vitalii Myronov / Alamy Stock Vector Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Nature America Inc. New York
5 For Jeannette
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7 Foreword Adam Smith wrote in the eighteenth century. Revolutionary changes have swept the world in the centuries since he died, but his books still have much to offer us in the twenty-first century. The political economy of the USA today is based on a laissez-faire interpretation of his Wealth of Nations, but according to many scholars, that interpretation grossly distorts Smith s ideas. Correctly interpreting Smith s thought would lead to greater happiness in all capitalist political economic systems. Smith s recipe for a wealthy nation was equality, liberty, and justice; this work is based on the assumption that equality in the pursuit of happiness is impossible without justice and liberty. However, equality does not produce equal results. Smith, like the founders of this nation, assumed that equal opportunity would produce different results because individual capabilities vary so widely. Several things the reader might expect to find in a book on happiness were not issues when Smith wrote in the eighteenth century. The following paragraphs discuss issues that have important happiness implications, but because Smith did not write about them, they will not be analyzed in this book. While he emphasized the sociability of human beings, he had nothing to say about major contemporary social relationship problems such as high divorce rates and teenage pregnancy. These are important for their impact on happiness, but other than his do no harm principle (work as hard as you can, but do not harm another person) he cannot help us on these issues. vii
8 viii Foreword Equal rights for women were not an issue in Smith s time, but, as Kathryn Sutherland explains, his work negatively affects women s rights through its determining concealment of society s reliance upon women s active contribution to the production of value. She also states: In so far as it refuses or conceals the female contribution to the economy, Smith s narrative of proto-industrial society continues to exert a masterly authority over our understanding of the relation between women and work. 1 Wage inequality and other discrimination against women undoubtedly affect happiness, but these are not the focus of this book. However, while one cannot know what position Smith would take on issues of discrimination based on gender, sexual preference, race, or religion were he alive today, his emphasis on equal opportunity should apply to all. Environmentalism simply was not an issue in the eighteenth century. While Smith did not directly deal with this complex set of issues, one may infer that his do no harm principle might make him a supporter of environmental protection. The importance of the environment is underlined by Thomas Piketty. While discussing government debt, he argues that: The more urgent need is to increase our educational capital and prevent the degradation of our natural capital. This is a far more serious and difficult challenge, because climate change cannot be eliminated at the stroke of a pen. 2 Sustaining the environment is clearly related to happiness. For instance, while recognizing that not all happiness scholars agree, Derek Bok clearly connects the ideology of perpetual economic growth with environmental degradation: If it should turn out, however, that growth no longer adds significantly to the happiness of Americans, both policy-makers and the general public may eventually have to consider whether it is sensible to invest so much time and effort and put the environment to so much risk in a ceaseless struggle to expand the output of goods and services. 3 Bruno Frey also argues that improving the environment has a positive effect on happiness. 4 This issue affects not only our happiness today but also the happiness of future generations. Nonetheless, as important as it is, environmental protection is outside the scope of this work because Smith did not address it. One other omission should be noted. There is no chapter entitled How do we get there? How do we move from laissez-faire capitalism
9 Foreword ix to a more egalitarian capitalism with justice? The issue of gaining support within our democracy to make such a significant change requires practical political thinking. While Smith s principles for a wealthy and happy nation are discussed, he left no advice on mobilizing a democracy to move toward his ideal system. The argument in this book is that laissez-faire has had a negative effect on happiness. That may sound like an ideological argument; were that so, this book would be untrue to the legacy of Adam Smith. As Charles Griswold Jr. writes, it is impossible to see Smith as either conservative or liberal, right or left, in the contemporary American sense of these terms. 5 While this is now a book, I consider it to be a work in progress. Much evidence is offered, but I welcome debate on the argument because I may have missed something important. 6 No doubt, many will be critical; I welcome their arguments about what I have omitted or misunderstood. However, I hope that many will also be convinced. Perhaps some will be challenged to develop additional arguments on this topic. So, in the spirit of Adam Smith, let us suspend our ideological predispositions, either to accept or reject arguments made herein, and examine what works for a happier nation. Notes 1. Kathryn Sutherland, Adam Smith s Master Narrative: Women and the Wealth of Nations, in Adam Smith s Wealth of Nations: New Interdisciplinary Essays, Stephen Copley and Kathryn Sutherland, eds. (Manchester: Manchester University Press, 1995), pp. 105 and Thomas Piketty, Capital in the Twenty-First Century, Arthur Goldhammer, trans. (Cambridge: Belknap Press of Harvard University Press, 2014), p Derek Bok, The Politics of Happiness (Princeton: Princeton University Press, 2010), pp Bruno S. Frey, Happiness: A Revolution in Economics (Cambridge: The MIT Press, 2008), p Charles L. Griswold Jr., Adam Smith and the Virtues of Enlightenment (New York: Cambridge University Press, 1999), p This is in the spirit of Sissela Bok s advice not to come to premature closure in exploring happiness, in Exploring Happiness: From Aristotle to Brain Science (New Haven: Yale University Press, 2010), p. 174.
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11 Acknowledgments A large community contributed to this book. I am deeply grateful to this community for the thoughtful and constructive comments, criticisms, and suggestions I have received. Larry Hartenian, Karen Lischinsky, Les Muray, Becki Paynich, Russ Pregeant, and Hazel Varella are those who commented on all or most of the manuscript. Other colleagues, who read individual chapters, answered questions, and suggested sources include Melissa Anyiwo, Grant Burrier, David Fedo, Barbara Fournier, Peter Hainer, Susan James, Robert MacDougall, Maureen Murphy, Kathy O Donnell, Silas Pearman, Kenneth Quigley, and Cathy Santos. An anonymous reviewer for Palgrave Macmillan provided a critical perspective which led to significant clarification of the arguments herein. David Bayley, a mentor for many years, provided critical support. Catherine Boustani, Nick Butts, Meg Dalton, Matt Hennessey, Matt Hirsch, Kristen Miller, and students in my Capitalism, Socialism, Democracy seminar at Curry College read earlier versions; I benefited immensely from their comments and questions. In addition, Phil Belmont, Safara Fisher, Chris Menton, and Paul Schwab, alumni, made helpful suggestions and criticisms. Elizabeth and David Cutting and Samuel Hill, family members, also read and criticized an earlier version. Last, but most definitely not least, my wife, colleague, and best reader, Jeannette DeJong helped me clarify many obscurities and correct grammatical errors, and her love smoothed the rough spots of a very long road. xi
12 xii Acknowledgments My heartfelt thanks to all these, and any others whom I have inadvertently omitted, for their helpful suggestions. Nevertheless, any remaining errors or obscure passages are the author s responsibility; they exist in spite of the assistance of a wonderful community.
13 Contents 1 Introduction: A Forgotten Revolutionary Ideal 1 2 Justice, Liberty, and Equality: Adam Smith s Political Economy 21 3 Smith s Principles for the Twenty-First Century 61 4 Wealth for All 71 5 Health Education Crime Common Defense 179 xiii
14 xiv Contents 9 Taxes Conclusion 213 Bibliography 227 Index 243
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