Saving Adam Smith: A Tale of Wealth, Transformation, and Virtue

341 Pages·2001·3.38 MB·English

by  Jonathan B. Wight

PH034-WightFM.fm Page i Tuesday, October 16, 2001 8:10 AM
Praise for Saving Adam Smith
“Someone once said that you get knowledge from non-fiction, but you get
wisdom from fiction. Jonathan Wight demonstrates this beautifully. Wight uses
an entertaining and profound story to show how we can live a better life, have
a better society, and serve the best in everyone by taking a broader view—one
of both virtue and practicality. People of all ages, but particularly students, will
have this book available to give them a deeper, more integrated view of what
our world can be. This is a remarkable achievement and a fun read.”
—Michael Ray
Professor, Stanford Graduate School of Business,
co-author, Creativity in Business and The New Paradigm in Business
and author, Two Questions (2002)
“Saving Adam Smith provides us an everyday look at traditional eco-
nomic theory put into real-time business decision making … a socially
responsible approach to globalization. Anyone who talks about the ‘invisible
hand’ and doesn’t understand the moral context in which it operates has
probably never read this book, nor ever had the pleasure of a campfire con-
versation with Adam Smith!”
—Daniel J. Gertsacov
CEO, Forum on Business and Social Responsibility in the Americas
(Forum EMPRESA)
“We all live in Adam Smith’s economic world, but as Jonathan Wight’s wise
and witty story show us, it’s not exactly the world that Smith had in mind. In
his lively tale, Wight brings Smith back to remind economics students and
readers of all stripe that we are not here to serve the economy, the economy
is here to serve the needs of everyone in our society.”
—Joanne B. Ciulla
Professor and Coston Family Chair in Leadership and Ethics,
University of Richmond and author of The Working Life:
The Promise and Betrayal of Modern Work
“Terrific.... [T]he book will make the ideas of Adam Smith much more
accessible to high school and college students.… Adam Smith’s philosophy
emphasizing the virtue, morality, and trust that are needed for a market
economy is right on the money for today. Saving Adam Smith [is] an out-
standing addition to the economic theory novel genre.”
—John Morton
Vice President, National Council on Economic Education
PH034-WightFM.fm Page ii Tuesday, October 16, 2001 8:10 AM
“Wight’s tale of adventure presents Smith’s insights about self-interest in
the wider context of his social philosophy. The book challenges students—
and economists—to follow Smith in making room for justice and con-
science in economic choices.”
—David C. Smith
President, Council for Ethics in Economics
“The story is engaging at several levels. I was drawn to keep reading it…
This manuscript makes a real contribution.”
—James Halteman
Carl R. Hendrickson Professor of Business and Economics,
Wheaton College
PH034-WightFM.fm Page iii Tuesday, October 16, 2001 8:10 AM
PH034-Wight.book Page iv Monday, October 1, 2001 5:19 PM
In an increasingly competitive world, it is quality
of thinking that gives an edge—an idea that opens new
doors, a technique that solves a problem, or an insight
that simply helps make sense of it all.
We work with leading authors in the various arenas
of business and finance to bring cutting-edge thinking
and best learning practice to a global market.
It is our goal to create world-class print publications
and electronic products that give readers
knowledge and understanding which can then be
applied, whether studying or at work.
To find out more about our business
products, you can visit us at www.ft-ph.com
PH034-Wight.book Page v Monday, October 1, 2001 5:19 PM
FINANCIAL TIMES PRENTICE HALL BOOKS
For more information, please go to www.ft-ph.com
Deirdre Breakenridge
Cyberbranding: Brand Building in the Digital Economy
Jonathan Cagan and Craig M. Vogel
Creating Breakthrough Products: Innovation from Product Planning
to Program Approval
Subir Chowdhury
The Talent Era: Strategies for Achieving a High Return on Talent
Sherry Cooper
Ride the Wave: Taking Control in a Turbulent Financial Age
James W. Cortada
21st Century Business: Managing and Working
in the New Digital Economy
James W. Cortada
Making the Information Society: Experience, Consequences, and Possibilities
Aswath Damodaran
The Dark Side of Valuation: Valuing Old Tech, New Tech,
and New Economy Companies
Nicholas Evans
Business Agility: Strategies for Gaining Competitive Advantage
through Mobile Business Solutions
David Gladstone and Laura Gladstone
Venture Capital Handbook: An Entrepreneur’s Guide to Raising Venture Capital,
Revised and Updated
David R. Henderson
Joy of Freedom: An Economist’s Odyssey
Dale Neef
E-procurement: From Strategy to Implementation
John R. Nofsinger
Investment Madness: How Psychology Affects Your Investing…
And What to Do About It
Jonathan Wight
Saving Adam Smith: A Tale of Wealth, Transformation, and Virtue
Yoram J. Wind and Vijay Mahajan, with Robert Gunther
Convergence Marketing: Strategies for Reaching the New Hybrid Consumer
PH034-Wight.book Page vi Monday, October 1, 2001 5:19 PM
PH034-WightFM.fm Page vii Tuesday, October 16, 2001 8:12 AM
PH034-WightFM.fm Page viii Tuesday, October 16, 2001 8:12 AM
A CIP catalog record for this book can be obtained from the Library of Congress
Editorial/Production Supervision: MetroVoice Publishing Services
Acquisitions Editor: Tim Moore
Marketing Manager: Debby van Dijk
Manufacturing Manager: Maura Zaldivar
Cover Design Director: Jerry Votta
Cover Design: Anthony Gemmellaro
Interior Design: Gail Cocker-Bogusz
Project Coordinator: Anne R. Garcia
© 2002 Prentice Hall PTR
Prentice-Hall, Inc.
Upper Saddle River, NJ 07458
Prentice Hall books are widely used by corporations and government agencies for
training, marketing, and resale.
The publisher offers discounts on this book when ordered in bulk quantities.
For more information, contact: Corporate Sales Department, Phone: [phone];
Fax: [phone]; Email: [email protected]; or write: Prentice Hall PTR,
Corp. Sales Dept., One Lake Street, Upper Saddle River, NJ 07458.
All rights reserved. No part of this book may be reproduced, in any form or by any
means, without permission in writing from the publisher.
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
ISBN 0-13-065904-5
Pearson Education Ltd.
Pearson Education Australia PTY Ltd.
Pearson Education Singapore, Pte. Ltd.
Pearson Education North Asia Ltd.
Pearson Education Canada, Ltd.
Pearson Educación de Mexico, S.A. de C.V.
Pearson Education—Japan
Pearson Education Malaysia, Pte. Ltd.
Pearson Education, Upper Saddle River, New Jersey
PH034-Wight.book Page ix Monday, October 1, 2001 5:19 PM
Contents
Preface
XIII
Disclaimer
XV
PART I WEALTH 1
1 Adam Rising 3
2 Higher and Deeper 9
3 A Dangerous Business 19
4 Will the Real Adam Smith Please Stand Up?
31
5 Contraband 47
6 Self Interest Is Not Selfishness 57
7 On the Road with Adam Smith 65
8 Creating Wealth 75
9 The Poor Man’s Son 89
10 The Lady Sings 99
11 Wealth and Happiness 109
PART II TRANSFORMATION 117
12 The Search for Profit 119
13 Feelings Are Real 133
ix