To Be Loved and To Be Lovely
A review of Russ Roberts' "How Adam Smith Can Change Your Life"
Economics is often seen as a dry academic field—professors debating theories and mathematical models to explain how economies work or should work. Imagine overhearing two economists arguing about an abstract formula in a coffee shop. It’s hardly the stuff that grips most people’s imagination. These models aim to predict economic behavior, but they’re often wrong, with explanations offered only after the fact.
The real challenge of economics is studying humanity and how it operaties with all its complexities and nuances. The hope is that economics can guide policies and decisions that promote flourishing and human fulfillment. Some of the best, most foundational insights into this field came centuries ago from Adam Smith, a professor from Scotland (1723 - 1790).
Smith is most famous for his 1776 work, The Wealth of Nations, which laid the intellectual groundwork for modern capitalism. It explained how work specialization and free trade allow economies and countries to prosper. It was a breakthrough notion at the time and hugely influential to politicians and policy makers in the UK, the US, and elsewhere.
The Wealth of Nations is where the famous “invisible hand” analogy comes from. The ingredients for your dinner did not come because people care about you. They came from people acting in their own self-interest to provide products and make a profit. This self-interest, far from being evil, benefits both parties in a trade.
“It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.”
However, many economists today overlook Smith’s other book, The Theory of Moral Sentiments. Yes, free trade and self-interest drive economies, but what guides people’s better behavior? How can someone be self-interested and a good neighbor? What motivates a person to do good? Smith tackled these questions in The Theory of Moral Sentiments, which was published decades before The Wealth of Nations and revised multiple times until his death in 1790.
Smith’s book can feel dry or confusing to modern readers, but economist and author Russ Roberts argues it’s one of the wisest and most insightful works on human nature ever written. Its wisdom lies in its deep exploration of human motivations, empathy, and the pursuit of moral integrity—concepts that resonate even in today’s complex world.
Smith anticipated ideas from psychology and behavioral economics centuries before they became formal fields. Roberts’ 2014 book, How Adam Smith Can Change Your Life, introduces modern readers to Smith’s ideas. In ten accessible chapters, Roberts explores key themes from The Theory of Moral Sentiments.
You might think the father of free trade would celebrate greed and the pursuit of wealth. Actually, he argued the opposite. Smith explained that blindly chasing material wealth at all costs leads to emptiness, if not outright misery. Smith says no, a much better way is to pursue wisdom and virtue.
Roberts’ book covers a wide range of Smith’s ideas. For instance, do people act with integrity out of love for others, or for a more personal reason? Smith writes:
“It is not the love of our neighbour, it is not the love of mankind, which upon many occasions prompts us to the practice of those divine virtues. It is a stronger love, a more powerful affection which generally takes place upon such occasions, the love of what is honourable and noble, of the grandeur, and dignity, and superiority of our own characters.”
Or how about on empathy and perspective? Smith says:
“Every calamity that befalls them, every injury that is done them, excites in the breast of the spectator ten times more compassion and resentment than he would have felt, had the same things happened to other men.”
In other words, we’re more affected by our own minor inconveniences than by distant tragedies. A paper cut can ruin your evening, while news of a far-off disaster might be quickly forgotten. Smith’s observations challenge us to understand the limits of our empathy without feeling guilty for being human.
What do people truly want from life? Smith tells us:
“Man naturally desires, not only to be loved, but to be lovely; or to be that thing which is the natural and proper object of love. He naturally dreads, not only to be hated, but to be hateful; or to be that thing which is the natural and proper object of hatred. He desires, not only praise, but praiseworthiness; or to be that thing which, though it should be praised by nobody, is, however, the natural and proper object of praise. He dreads, not only blame, but blameworthiness; or to be that thing which, though it should be blamed by nobody, is, however, the natural and proper object of blame.”
This passage offers a lot to unpack. Roberts’ book helps readers understand what it means to be “loved” and “lovely” in today’s world. How does one feel loved or appreciated? What can you do to be worthy of it?
The book goes on to cover broader ideas like How does society decide what is right? Why do authoritarian solutions fail? How does order emerge from chaos? Smith believed that moral norms arise organically through interactions within a community, rather than being imposed from above, and Roberts illustrates how these principles remain vital today. Adam Smith explored these questions in the 18th century, and Russ Roberts helps show their relevance today.
The Theory of Moral Sentiments is challenging to read alone, with its dense language and complex arguments that demand patience and reflection. Yet, Roberts calls it a goldmine, as those who persevere are rewarded with timeless insights into human nature and morality that continue to resonate in the modern world. He carried it to his kids’ sports games and read passages at family dinners. His book, How Adam Smith Can Change Your Life, invites readers into Smith’s mind and ideas, offering insights into a “richer” life—but not in the way you might expect.
Smith’s work is in the public domain, and free copies are available on sites like Standard Ebooks. Roberts’ book has inspired me to consider tackling this classic. I plan to try the original text later this year. I will close this edition with my favorite quote from Smith’s book.
“What can be added to the happiness of the man who is in health, who is out of debt, and has a clear conscience?”