Book contents
- Law and the Invisible Hand
- Law and the Invisible Hand
- Copyright page
- Dedication
- Contents
- About the Cover
- Figures
- About the Author
- Preface
- Acknowledgments
- Guide to Citations by Adam Smith
- 1 Introduction
- 2 Setting the Stage
- 3 Social Organization in the Informal Realm
- 4 Social Organization in the Formal Realm
- 5 Integrating the Informal and Formal in Smith’s Theory
- 6 The Spectator View
- 7 Judgment and Justice
- 8 The Sentiment of Common Interest
- 9 The Impartial Spectator, Homo economicus, and Homo identicus
- 10 Understanding the Four Stages of Progress
- 11 Adam Smith in American Law
- 12 Parting Thoughts
- Bibliography
- Index
10 - Understanding the Four Stages of Progress
Published online by Cambridge University Press: 27 September 2021
- Law and the Invisible Hand
- Law and the Invisible Hand
- Copyright page
- Dedication
- Contents
- About the Cover
- Figures
- About the Author
- Preface
- Acknowledgments
- Guide to Citations by Adam Smith
- 1 Introduction
- 2 Setting the Stage
- 3 Social Organization in the Informal Realm
- 4 Social Organization in the Formal Realm
- 5 Integrating the Informal and Formal in Smith’s Theory
- 6 The Spectator View
- 7 Judgment and Justice
- 8 The Sentiment of Common Interest
- 9 The Impartial Spectator, Homo economicus, and Homo identicus
- 10 Understanding the Four Stages of Progress
- 11 Adam Smith in American Law
- 12 Parting Thoughts
- Bibliography
- Index
Summary
A difficulty in understanding Smith’s four stages of progress is that he more or less assumes progress but does not offer any clear theory of how it might take place. Smith almost seems to attribute progress to random events or serendipity, but using contemporary references, we should be able to develop a better understanding of his theory. We know Smith understood that self-interest was related to the natural desire to truck, barter, and exchange, and that he believed in the market as an important vehicle for coordinating cooperation and trade among people. In this regard, he understood that robust markets were decentralized with many producers and consumers. Moreover, Smith believed that progress was linked to the process of extending and diversifying the market. This was because extending and diversifying the market enhanced the opportunity for the further division of labor, and this increased the value of trading networks, which in turn further promoted wealth and asset accumulation. With this in mind, we undertake a closer look at Smith’s theory of progress and put it into a contemporary context by comparing it to market process theory.
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- Information
- Law and the Invisible HandA Theory of Adam Smith's Jurisprudence, pp. 104 - 118Publisher: Cambridge University PressPrint publication year: 2021