Reading discussion assignment 2

Over the next week complete read the first three chapters of Heilbroner. This is background material that will not be discussed (much) in class.

For in-class discussions, continue reading chapters 3,4, and 5 of Buchan. Be prepared to discuss the following questions beginning February 4 (Monday). Then as time permits, go ahead and cap off chapter 6 so we can move on.

This time earmark some sample quotations that you might offer in class to make a point.

1. [Harder question that you might have to not before discussion]. Based upon this reading, essentially what was The Theory of Moral Sentiments about? What seems to have been at the core of Smith’s argument in this book?

2. Sympathy?? Moderation?? Summarize Smith here (actually part of question 1). Any good quotes on moderation?

3. How does self-interest emerge in The Theory?

4. Here we encounter the first of our “invisible hand” quotes. This one is considerably different that the one in the Wealth of Nations. What does this one seem to suggest?

5. Did Smith seem to have a passion for the poor as did some of his contemporaries?

6. [Small question from page 71 – some humor]: According to Smith, why did the wealthy send their sons on The Grand Tour?

7. The Grand Tour played a significant role in Smith’s work and influence. Also we are informed that Smith was urged to complete his book prior to the outbreak of revolution in American so that it might have some influence. (He did and it didn’t). What historical role is played by Charles Townshend and what important role did he play in Smith’s life? Irony of ironies.

8. When in France, Smith met both Turgot and Quesnay, the physiocrats, who influenced him greatly, but he differed with them on an important matter. What important matter (you would really have to know something about the physiocrats to answer this with confidence). This minor dispute is no small matter in The Wealth of Nations. Is only agriculture “productive?” (And later in chapter 5, who is “unproductive”)?

9. Luxury consumption and the economic status of the poor ... what were some of the more popular thoughts during Smith’s era and where does he seem to come down on this question? Is luxury production and consumption ultimately good or bad, beneficial or harmful?

[Note: The discussion of the division of labor and the example of the pin factory, value theory, will be reserved for our discussion of The Wealth of Nations. Just read this material and we will remember, maybe, Buchan’s perspective when we get to the bog book].

No discussion about this, but as you read, grasp the importance of “stock” and “capital” and distinguish between “fixed capital” and “circulating capital.”