Relation between Wealth and Virtue

What according to
Smith is the relation
between wealth and
virtue?
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Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
What according to Smith is the relation between wealth and virtue?..........................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
This report is based on Adam Smith who is great philosopher of economics and has great
influence over several aspects of society which provide a better environment and promote better
competition and all theories and concepts are related to universal laws (Adam, 2016). The wealth
and virtues are interlinked and both are essential ingredient in economics as the former related to
money while latter related to moral standards. This provide a systematic approach that perceives
self-interest, sympathy and relation of virtues and wealth. Additionally, this report is based on
several concepts such as theory of moral sentiments and wealth of nation which help in
understanding several terms like distribution of income, virtue and also it provides details
regarding nature and ethics of human behaviour. This report covers several different opinions
and judgement by Smith which provide an idea regarding ethics and moral judgements.
Main Body
What according to Smith is the relation between wealth and virtue?
Adam Smith is a philosopher and writer who wrote several books related to economics as
he as considered as Father of Economics. He provides its own ideas regarding proper division of
workers and presents its view that rivalries and self-interest could lead to prosperity of economy.
His style of writing is greatly influenced by author such as Horace. He wrote several books such
as Wealth of Nations which provide more information regarding the phenomena of nature which
is a combination of several elements such as life, dissolution of flora and fauna and growth.
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Other most popular book such as “The theory of moral sentiments” which he considers to his
most appreciated and excellent work. In a dynamic nature, Smith evaluate the moral and ethics
of his time and encourage social interrelationship through sentiments and emotions as it
emphasises on making judgements of how people tends to perceive their behaviour as it led to
human beings to develop and maintain their habits (Cavallar, 2017). Both the above-mentioned
books depict an incompatible opinions and suggestions which is related to human nature.
Smith believe that self-interest would provide conditions on the basis of justice which in
turn provide good values and culture in a society. The most popular fact about Smith is that it is
well known for development of Gross Domestic Product (GDP) that provide theory on the basis
of wages differentials (Conlin, 2016).
In relation to this theory, unsecured and undesirable job would focus on paying more
wages so that they could find a way to grab the interest of workers in accordance of respective
positions. He is an 18th century philosopher which contribute a valuable thought and judgement
about the nature of individuals and the way they respond and fulfil the criteria in a community.
The ideas and facts presented by Smith in their book is excellent which assist other philosophers
to built its work and aids in formation of classical theory of economics (Hanley, 2016). In
addition to this, He discuss several ideas about the evolution of human society which provide a
fundamental basis to develop proper terms and conditions as well as rules and regulation in
society which create better relationships among them and ensure greater accountability and
transparency.
According to the view point of Adam Smith, an individual who is likely to spent its
wealth in a business entity would earn greater return on investment but at the same time it takes
more risk. The invisible man theory would be depicted in terms of natural phenomenon that
instructs market capitalism in the path of efficiency through rivalries and demand and supply of
particular force or inventory (Hühn, 2019). It also provides a force that proper dividing the work
among the worker in accordance of their specialisation which proves to be more beneficial for a
society. These measures would provide more prosperity of wealth and thus improve the living
standards which in turn generate desirable outcomes. Smith believes that morality could be
minimised with the help of set actions that provide several judgements about society as its
overall opinions emphasise on virtues and wealth. Smith tends to acknowledge that action is
determined on the basis of several intuitions and intentions as culture and norms are more
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