Question

Can you please thoroughly explain these questions (in one page):

1. Why do interpreters of Adam Smith often think that he equates economic activity with selfish behavior, according to Amartya Sen?
2. Why does Amartya Sen believe they are wrong?

Answer 1

Interpreters of Adam Smith often think that he equates economic activity with selfish behaviour, according to Amartya Sen because Adam Smith prophecised that the government should not interfere with the course of economic activity and should not impose any restrictions on the individual activities or behaviour. He believes in Laissez Faire principle which stated that things should take their own course without any intervention in the economic activity by the government. This was seen as a selfish behaviour by the interpreters of Adam Smith as they believed that Adam Smith wanted his own freedom of expression and action and hence was prophecising these theories. Amartya Sen believed that the interpreters were wrong sunce Adam Smith was a true supporter of Laissez Faire principle and did not give the theory out of selfish intent but he actually wanted the economic affairs to be left to take their own course of action without any interference from the government or any other authorities.

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