Adam Smith’s America: How a Scottish Philosopher Became an Icon of American Capitalism

Harvard social studies researcher Liu debuts with an intricate and provocative analysis of Scottish moral philosopher Adam Smith’s influence on U.S. politics and business. Though Smith has become synonymous with the notion that “individuals pursuing their self-interest could promote the public good without intention or direction,” Liu argues that this reputation “is neither historically accurate nor was it inevitable.” Contending that the contemporary understanding of Smith is an American invention of relatively recent provenance, she traces its roots to the Chicago School of Economics’ doctrine “that rational self-interest is the only valid premise for the analysis of human behavior, and that only the invisible hand of the market... could guarantee personal and political freedom.” Noting that Smith’s writings have been mobilized to defend many different positions over the years, Liu analyzes his paradoxical reputations in revolutionary France, imperial Germany, and early America. The version of Smith that rose to predominance under the auspices of the Chicago School after the Great Depression found practical expression in neoliberal policies and has resulted in a rigid belief that “capitalism must survive” and an unwillingness to look for alternatives, according to Liu, who warns that “Americans might be captive to the very ideas of an Adam Smith that [they] invented.” Granular yet accessible, this is a rewarding reconsideration of an influential thinker. (Nov.)