Explore the complex relationship between economics and morality in this hour-long lecture from Gresham College featuring Professor Richard Whatmore, an expert in intellectual history. Delve into the historical foundations of economics as a moral science, examining how the discipline evolved from philosophical roots to its modern mathematical form. Learn about Adam Smith's often misinterpreted works, particularly the nuanced relationship between The Wealth of Nations and The Theory of Moral Sentiments, while understanding the contrasting perspectives of influential thinkers like David Hume on issues of debt, taxation, and commerce. Gain insights into Britain's economic transformation during the Industrial Revolution, the true meaning of the 'invisible hand' concept, and parallels between Smith and Hayek's views on free markets and civilization. Connect historical economic challenges with contemporary issues, including the 2008 financial crisis, inequality, and climate change, while examining the critical role of moral sentiments in economic relations and the enduring value of free states in navigating modern economic challenges.

Syllabus

// Introduction to Morals and Markets. An overview of the theme: how economics intertwines with morality beyond mere statistics.
// Historical Foundations of Economics and Philosophy. Exploring the origins of economics as part of moral sciences, referencing G.E. Moore and John Maynard Keynes.
// Modern Economics: Physics Envy and Homo Economicus. Discussion on the transformation of economics into a technical and mathematical discipline.
// Global Financial Crisis and Modern Challenges. Addressing the aftermath of the 2008 financial crisis, inequality, precarity, and climate change.
// Adam Smith and Moral Capitalism. Introducing Adam Smith’s dual contributions: The Wealth of Nations and The Theory of Moral Sentiments.
// Richard Whatmore’s "The End of Enlightenment". A deep dive into Whatmore’s book, Enlightenment crises, and Britain's survival against predictions of collapse.
// David Hume’s Views on Debt and State Collapse. Hume’s concerns about Britain’s increasing debt, war funding, and the implications of financial instability.
// Adam Smith vs. David Hume on Debt. Contrasting views on debt, taxation, and the role of commerce in stabilizing the state.
// The Evolution of British Economics and Industrial Revolution. Why Britain avoided collapse, rose to dominance, and became the "workshop of the world."
// The Invisible Hand and Its Misinterpretations. Exploring Adam Smith’s famous concept and how it has been misunderstood by modern economists.
// Comparing Smith and Hayek on Civilization and Free States. Parallels between Adam Smith and Friedrich Hayek in their defense of free markets and civilization.
// Fanaticism, Free States, and Modern Crises. A reflection on the parallels between historical and modern fanaticism and the challenges facing free states.
// Conclusion: Lessons from History for Modern Economies. Emphasizing the importance of context, skepticism of utopian promises, and the value of free states.