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Adam Smith's System of Liberty, Wealth, and Virtue$

Athol Fitzgibbons

Print publication date: 1997

Print ISBN-13: 9780198292883

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198292880.001.0001

(p. 135 ) IV Economic Theories

Source:
Adam Smith's System of Liberty, Wealth, and Virtue
Publisher:
Oxford University Press

The central theme of The Wealth of Nations was that respect for the cardinal virtues could both advance economic growth and minimize the alienation that liberalism and the creation of wealth entailed. The fundamental virtue of commutative justice indicated free trade, but the other virtues also played important roles. Inferior prudence was necessary to encourage thrift and capital accumulation, while the practice of benevolence and self‐command would counteract the alienation that otherwise would be caused by commercial life and its indifference to higher values. Smith cemented his conclusion that wealthy and liberal societies could be stable and enduring, provided they encouraged the liberal version of virtue. (p. 136 )