Trump should heed Adam Smith’s lesson on markets

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Trump should heed Adam Smith’s lesson on markets
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The president-elect would do well to remember the role of ‘moral sentiments’

On Tuesday, while the US was voting, I heard a successful American businessman suggest at a dinner that the election could be framed as a choice between prioritising “capitalism” or prioritising “democracy”. During the campaign, Democrats often derided Donald Trump for his perceived onslaught on democracy, while Trump attacked Kamala Harris for her allegedly pro-government, anti-capitalist stance. Hence those “Comrade Kamala” memes.

Smith viewed this book as his most important work, since he believed the key to building dynamic commerce and markets is to create a system based on shared moral values and trust. That requires transparency, fair play and consistent property rights, since “if is removed, the great, the immense fabric of human society . . . must in a moment crumble into atoms”. In short, he saw corporate monopolies and capricious abuses of power as anti-capitalist.

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