If Adam Smith were to assess the state of our modern economic systems, his critique would likely be sharp yet eloquent, reflecting the moral gravitas of The Theory of Moral Sentiments and the practical insights of The Wealth of Nations.
With the help of ChatGPT, here’s how he might describe our current state, in a style akin to his own:
On the Perils of Monopolies and Market Concentration
“The spirit of monopoly, ever watchful for its own gain, has entrenched itself with a strength unimagined in my time. By consolidating wealth and power, it stifles the competition upon which the prosperity of all depends, reducing the freedom of the market to a mere shadow of its ideal. Where once the invisible hand guided the interests of individuals toward the public good, it now falters under the weight of private greed and unchecked dominance.”
On Inequality and the Influence of the Wealthy
“The opulence of a few has grown beyond measure, while the laborer, whose toil is the foundation of all wealth, struggles to secure the basic comforts of life. The balance I spoke of—where the gains of industry were shared among all ranks of society—has tipped alarmingly. The wealthy, no longer content with fortune, now seek dominion over laws and policies, turning the instruments of justice into tools for their own advantage. Such an abuse of influence was not the liberty I envisaged but its corruption.”
On the Exploitation of Workers
“When the division of labor was extolled for its productivity, it was never my intention to reduce man to a mere cog in the machinery of profit. Yet, this seems the lot of many: laboring not for their own improvement or society’s betterment, but for the insatiable appetites of those who hold the reins of capital. Such dehumanization is a grave injustice, for the wealth of nations should enrich the spirit as well as the purse.”
On the Failures of Justice
“Justice, that sacred pillar upon which society stands, has grown frail under the assaults of avarice. The laws that should shield the weak and curb the excesses of the powerful are too often bent to favor those whose wealth affords them undue influence. A society where justice falters cannot long endure, for it undermines the very trust that binds its members together.”
On the Degradation of Public Goods
“The neglect of public works and institutions, whose benefits extend to all, is a dereliction of duty most grievous. Where roads, schools, and healthcare should unite society and provide opportunity for every individual, there is instead scarcity and decay. Such public neglect betrays the foundational compact of a civilized society—that individuals, by yielding a portion of their freedom, should gain security and prosperity in return.”
On Environmental Degradation
“Though I spoke little of the land and its stewardship, it pains me to see its bounty so thoughtlessly plundered. The pursuit of gain, divorced from prudence, has stripped forests, polluted rivers, and laid waste to fertile soils, as though man were not a tenant but a tyrant. This disregard for the natural world is not only unwise but immoral, for it deprives future generations of their rightful inheritance.”
On Rent-Seeking and Cronyism
“The art of rent-seeking, that most pernicious of practices, has flourished to an extent that would have appalled even the most avaricious merchant of my day. By manipulating governments and regulations to secure unearned wealth, these actors rob society of its vigor and innovation. Such behavior is an affront to the free market and a betrayal of the public trust.”
On the Myopia of Financialization
“Commerce and industry, which once enriched nations through productive labor, have been overshadowed by the ephemeral gains of speculation. When wealth is extracted not by the sweat of the brow but by the flicker of numbers on a screen, society risks becoming unmoored from the principles of real value and mutual benefit. This chase for fleeting profits undermines the steady and durable growth upon which true prosperity rests.”
On the Absence of Moral Sentiments in Markets
“Markets, untempered by the virtues of sympathy, justice, and prudence, have become arenas of unrestrained self-interest. The invisible hand, which I imagined as a harmonious force, now wields destruction where virtue is absent. A society that values wealth above character, and profit above purpose, cannot sustain the bonds of trust and cooperation upon which its flourishing depends.”
A Call for Renewal
“Let us remember that the wealth of a nation is not measured solely by its riches but by the happiness and dignity of its people. Let the virtues of justice and beneficence guide our institutions; let the pursuit of gain be tempered by the greater good. For if we do not restore balance to our economic and moral lives, we shall find, too late, that we have bartered the prosperity of many for the greed of a few.”
Conclusion
Adam Smith’s hypothetical critique would center on how we have distorted the principles of free markets and self-interest into tools of unchecked power, inequality, and environmental harm. His solution would call for a return to moral grounding—embedding justice, fairness, and public good into the heart of economic activity.
What Additional Safeguards or Institutions Might You Now Propose?
Additionally, we asked: “Mr. Smith, if the moral sentiments and virtues you championed were meant to temper self-interest and guide markets toward societal good, what additional safeguards or institutions might you now propose to ensure that capitalism serves the many rather than enriching the few, while safeguarding our planet and posterity?”
This may have been his reply:
Justice as the Foundation of Society
“Injustice, if permitted to spread, undermines the very structure of society. The laws that govern commerce must be crafted with a firm and impartial hand, ensuring that no individual or group gains undue advantage over others. Monopolies, which I regarded as destructive to the spirit of competition, must be resisted with vigilance, for they restrict the liberty of trade and oppress the consumer. The state’s foremost duty, therefore, is to establish and uphold a framework of justice that protects all ranks of society from the encroachments of the powerful.”
Fairness in the Distribution of Wealth
“It is evident that the fruits of industry have been unequally distributed, leading to a gulf between the wealthy few and the laboring multitude. This inequality, if left unchecked, breeds resentment and discord, undermining the harmony of society. I would urge that the rewards of labor be more equitably shared, not through arbitrary exactions but by encouraging systems that ensure fair wages and provide for the needs of the most vulnerable. A nation’s wealth must be judged not by the splendor of its elites but by the dignity and security of its common people.”
The Perils of Speculation
“The rise of financial speculation concerns me greatly, for it diverts capital from productive enterprise and fosters instability. Such practices enrich a few without adding to the wealth of society, creating a chimera of prosperity that collapses when tested by adversity. I would counsel that the state impose prudent limits upon speculative endeavors, ensuring that wealth flows toward endeavors that strengthen the real economy and provide lasting benefit to the community.”
Stewardship of Nature
“In my time, the bounty of nature seemed limitless, but I now perceive that its treasures are finite and vulnerable. The unrestrained exploitation of the earth’s resources, driven solely by profit, is a profound error, for it sacrifices the inheritance of future generations. I should propose the establishment of safeguards that require all industries to account for the costs they impose upon the natural world, ensuring that commerce proceeds in harmony with the environment rather than at its expense.”
Education and the Moral Improvement of Society
“I once observed that the laborer, confined to repetitive tasks, risks becoming as ignorant as his toil. To counter this, I would call for the universal provision of education, not merely as a means of improving productivity but as a safeguard against the intellectual and moral degradation that attends extreme specialization. A well-educated populace is the foundation of a free and flourishing society, capable of resisting the corruptions of wealth and power.”
The Role of Virtue in Markets
“Though I have championed the workings of self-interest, I did so with the expectation that it would be tempered by the virtues of prudence, justice, and beneficence. A market devoid of virtue descends into corruption, for it values gain above all else. Institutions must therefore foster a spirit of moral responsibility, reminding all participants in commerce that their actions affect the lives of others and that their true success lies in advancing the common good.”
Conclusion
“The imperfections of human nature, when left unrestrained, can corrupt even the most promising systems. My design for a prosperous society rests upon the balance of liberty and restraint, self-interest and virtue, commerce and justice. If these balances are disturbed, as appears to be the case in your time, the remedy lies not in abandoning the principles of free trade but in fortifying them with institutions that uphold fairness, accountability, and moral purpose. Let it never be forgotten that the true wealth of nations resides not in gold or industry alone but in the well-being and virtue of its people.”
Continue Reading on Striving & Thriving:
Rethinking the Flywheel: Why Amazon’s Misinterpretation Misses the Mark
The concept of a flywheel, as originally designed, was never about spinning faster to achieve exponential growth. It was about stabilizing energy output—ensuring a steady,
From Striving to Thriving: How Amazon is a Strive-Driven Giant Failing to Thrive
Amazon has become synonymous with business success, often hailed as a master of efficiency, customer obsession, and innovation. At the heart of its growth strategy
The Flywheel of Shared Success: How Impact Drives Sustainable Growth
In the fast-paced world of business, the focus often rests on immediate value creation—developing products, closing deals, and driving revenue. While these activities generate vital
The Reciprocity Effect: How Giving Back Completes the Cycle
Ten years ago, I began developing the Customer Lifecycle—a map of frontline activities—because I saw how social media was reshaping the marketplace. It wasn’t just
Impact Strategies to Amplify Value and Mitigate Harm Across Stakeholders
What if doing the right thing wasn’t just a moral choice but a strategic one? What if amplifying your organization’s positive impact while mitigating harm
From Extraction to Contribution: Thriving Together with Shared Success
The Flywheel of Shared Success is designed to demonstrate that staying within the boundaries of responsible growth doesn’t mean limiting our ambitions—it means channeling them
The Twin Engines of Progress: Returns on Value and Impact
At the heart of the Flywheel of Shared Success lies the powerful interplay between Value Returns and Impact Returns, both of which operate on the
From Hopping for Cash to Building Bridges: Why Self-Interest Alone Can’t Sustain Shared Prosperity
What we’re proposing with the Flywheel of Shared Success is nothing short of a call to confront and correct our deeply flawed execution of Adam
The Impact Chain Framework: Transforming Values into Shared Success
The Impact Chain operates alongside the Value Chain, complementing its focus on value creation and economic profit. While the Value Chain transforms activities into financial
Value Chain vs. Impact Chain—Defining the Difference
For decades, the value chain has been the backbone of business, guiding organizations to create and deliver value efficiently. But as the world grows more
Unveiling the Impact Chain: Unlocking the Marvelous Flywheel of Shared Success
For decades, Michael Porter’s Value Chain has been a cornerstone of strategic thinking, guiding businesses to optimize activities for profitability. While undeniably powerful, it reflects
The Strive & Thrive Cycle: Distinquishing Between Value and Impact
Distinguishing between value creation and deployment (Strive-phase) and impact creation and deployment (Thrive-phase) is critical to clarifying their roles within the Strive & Thrive Cycle. Here’s
