Adam Smith

On Thursday 23 April staff, alumni and other friends of the University gathered in the Sybil Centre at the University’s Women’s College, to acknowledge and celebrate the 250th anniversary of the publication of Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations, which was published on 9 March 1776. The event was sponsored by the School of Economics.

Following the serving and enjoyment of refreshments from 5pm, formal proceedings for the event took place from 6pm. Three speakers, all from the School of Economics, The University of Sydney, each delivered commentaries followed by Q&A. The speakers were Senior Lecturer Dr Matthew Smith, Professor of Practice Hugh Harley and Emeritus Professor Tony Aspromourgos. The discussion and Q&A were expertly moderated by Professor Stefanie Schurer, whose guidance ensured a thoughtful and engaging exchange.

Given the length of the Wealth of Nations, each speaker had to be selective on what themes they chose to address.

Matthew Smith considered how the Wealth of Nations remains relevant today and can help to better understand and deal with the many challenges now confronting liberal capitalism. He focussed on the recent debate about the low rate of productivity growth in Australia, by reference to Smith’s key concept of the division of labour; and on the challenge of income and wealth inequality, by reference to Smith’s arguments for achieving greater equality of income through stronger economic growth, necessary to achieve the policy goal of ‘universal opulence’, which extends to the lowest ranks of society.

Hugh Harley argued that Smith’s overwhelmingly most important contribution was to establish that competition within a society could become a fundamental organising principle for society as a whole. In time, competition not only became a cornerstone of liberal capitalism, but of liberal democracy as well. Professor Harley also considered Smith’s scepticism about the economic viability of the corporation, noting that corporations have proven to be the most impactful examples of cooperation among private individuals on a voluntary basis in history. Finally, while the boundary of competition was elastic in Smith’s schema, his insistence on the rule of law was not.

Tony Aspromourgos’s commentary began by emphasizing the centrality of economic development for Smith’s book and then focussed on two aspects which, he argued, loom largest in the wider public perception of Smith’s thought, beyond the academy: the character and significance of self-interest and the meaning of the invisible hand. Professor Aspromourgos then concluded with some reflections on competition and technological dynamism, with particular reference to centralized versus decentralized systems and the current geopolitical contest between the United States and the People’s Republic of China.

The lively Q&A that followed was a resounding confirmation that the three speakers had very well stimulated the interest of the assembled audience of approximately 200 people. This positive response from the audience was further confirmed by a very considerable proportion of those people remaining after the formal proceedings ended at about 7.30pm, for further refreshments and informal discussion until 8.30pm.