Send us a text Adam Smith's "The Wealth of Nations" developed from decades of lectures on jurisprudence, examining how market exchange creates prosperity through division of labor and specialized skills. • Two core observations drive Smith's thinking: humans seek approval from others and have a propensity to "truck, barter and exchange" • Exchange is Smith's key concept—not just for goods but for ideas, sentiments and social coordination • Division of labor dramatically increases productivit...
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Send us a text Adam Smith's "The Wealth of Nations" developed from decades of lectures on jurisprudence, examining how market exchange creates prosperity through division of labor and specialized skills. • Two core observations drive Smith's thinking: humans seek approval from others and have a propensity to "truck, barter and exchange" • Exchange is Smith's key concept—not just for goods but for ideas, sentiments and social coordination • Division of labor dramatically increases productivit...
Adam Smith's Wealth of Nations: Episode #2--The "Model"
The Answer Is Transaction Costs
57 minutes
3 weeks ago
Adam Smith's Wealth of Nations: Episode #2--The "Model"
Send us a text Transaction costs provide the key to understanding Adam Smith's complete philosophical system and how his two great works form an integrated whole. • Smith's two essential claims: humans desire to learn proper behavior and have an innate propensity to truck, barter, and exchange • Sympathy in Smith's view means synchronizing feelings with others—not perfect emotional matching but sufficient "concords" for social harmony • Three core principles guide proper behavior: just...
The Answer Is Transaction Costs
Send us a text Adam Smith's "The Wealth of Nations" developed from decades of lectures on jurisprudence, examining how market exchange creates prosperity through division of labor and specialized skills. • Two core observations drive Smith's thinking: humans seek approval from others and have a propensity to "truck, barter and exchange" • Exchange is Smith's key concept—not just for goods but for ideas, sentiments and social coordination • Division of labor dramatically increases productivit...
