Meet the Real Adam Smith
When most people hear the name Adam Smith, one image pops up almost instantly:
The father of capitalism.
Maybe you think of the invisible hand, gently guiding markets.
Maybe you think of self-interest, and the idea that by pursuing our own gain, we somehow benefit society.
Maybe you picture a wise old economist laying down the foundations for free markets, open competition, and the world we know today.
There’s just one problem:
That’s only half the story.
And without the other half, the half we’ve largely forgotten, we risk misunderstanding not only Smith — but the entire system that shapes our lives.
The Other Book — and the Other Smith
Long before Adam Smith wrote The Wealth of Nations in 1776, he had already spent decades thinking about a deeper question:
What makes human society even possible in the first place?
The result was a different masterpiece: The Theory of Moral Sentiments (1759).
In it, Smith explored something that today’s headlines often seem to forget:
That human beings are not just rational calculators chasing profit.
We are emotional, social, empathetic creatures.
We care about fairness. We are guided by a sense of justice.
We judge our own actions — and the actions of others — not just by outcomes, but by what feels right.
Before Smith talked about free markets, he talked about moral instincts.
About sympathy. About the invisible forces of conscience that bind us together.
He didn’t see self-interest and morality as opposites.
He saw them as forces that had to be kept in balance.
Freedom Was Never Meant to Stand Alone
When Smith later wrote The Wealth of Nations, he built on this moral foundation. He believed that free markets, powered by individuals pursuing their goals, could unleash prosperity.
But he assumed that people would still be guided by their conscience — by what he called the “impartial spectator” within each of us.
He assumed that governments would enforce justice, protect competition, and invest in the public good.
He assumed that markets would operate within a larger moral society.
Smith knew that freedom without morality would not lead to prosperity.
It would lead to corruption, concentration of power, exploitation — the very things he warned about.
What We Forgot — and Why It Matters Now
Over the last two centuries, something critical happened:
We remembered the markets.
We forgot the morality.
We remembered the invisible hand.
We forgot the moral compass that guided it.
Today, we see the consequences all around us:
Rising inequality
Corporate monopolies
Workers treated as disposable
Short-term profits prioritized over long-term health
This isn’t the capitalism Adam Smith envisioned.
This is capitalism without its conscience.
Reclaiming the Full Vision
This series is about finding our way back.
Over the next seven posts, we’ll walk through:
The moral insights of The Theory of Moral Sentiments
The economic ideas of The Wealth of Nations
How modern capitalism diverged from Smith’s true vision
And most importantly, how we can restore the lost balance between morality and markets — for a healthier, fairer, and more resilient future.
Smith understood that markets and morality are not enemies.
They are partners.
If we want an economy that truly works for people — all people — we have to finish reading Adam Smith. Not just the parts that serve narrow interests.
The whole story.
Tomorrow
The Moral Heart: Exploring The Theory of Moral Sentiments