the cambridge companion to ADAM SMITH AdamSmithisbestknownasthefounderofscientificeco- nomics and as an early proponent of the modern market economy.Politicaleconomy,however,wasonlyonepartof Smith’s comprehensive intellectual system. Consisting of a theory of mind and its functions in language, arts, science, and social intercourse, Smith’s system was a towering con- tributiontotheScottishEnlightenment.Hisideasonsocial intercourse,infact,alsoservedasthebasisforamoraltheory thatprovidedbothhistoricalandtheoreticalaccountsoflaw, politics, and economics. This companion volume provides anup-to-dateexaminationofallaspectsofSmith’sthought. Collectively, the essays take into account Smith’s multiple contexts – Scottish, British, European, Atlantic; biographi- cal, institutional, political, philosophical – and they draw on all his works, including student notes from his lectures. Pluralisticinapproach,thevolumeprovidesacontextualist historyofSmith,aswellasdirectphilosophicalengagement withhisideas. KnudHaakonssenisProfessorofIntellectualHistoryinthe DepartmentofHistoryattheUniversityofSussex.AFellow oftheRoyalSocietyofEdinburghandtheAcademyofSocial Sciences in Australia, and Foreign Member of the Royal DanishAcademyofSciencesandLetters,heistheauthorand editorofnumerousbooksandtexts,mostrecently,Natural Law and Moral Philosophy: From Grotius to the Scottish Enlightenment and The Cambridge History of Eighteenth- CenturyPhilosophy. cambridge companions to philosophy othervolumesintheseriesofcambridge companions: ABELARD Editedbyjeffreye.browerand kevinguilfoy ADORNO Editedbytomhunn AQUINAS Editedbynormankretzmannand eleonorestump HANNAHARENDT Editedbydanavilla ARISTOTLE Editedbyjonathanbarnes AUGUSTINE Editedbyeleonorestumpand normankretzmann BACON Editedbymarkkupeltonen SIMONEDEBEAUVOIR Editedbyclaudiacard DARWIN Editedbyjonathanhodgeand gregoryradick DESCARTES Editedbyjohncottingham DUNSSCOTUS Editedbythomaswilliams EARLYGREEKPHILOSOPHY Editedbya.a.long FEMINISMINPHILOSOPHY Editedbymiranda frickerandjenniferhornsby FOUCAULT Editedbygarygutting FREUD Editedbyjeromeneu GADAMER Editedbyrobertj.dostal GALILEO Editedbypetermachamer GERMANIDEALISM Editedbykarlameriks GREEKANDROMANPHILOSOPHY Editedby davidsedley HABERMAS Editedbystephenk.white HEGEL Editedbyfrederickbeiser HEIDEGGER Editedbycharlesguignon HOBBES Editedbytomsorell HUME Editedbydavidfatenorton HUSSERL Editedbybarrysmithand davidwoodruffsmith WILLIAMJAMES Editedbyruthannaputnam KANT Editedbypaulguyer KIERKEGAARD Editedbyalastairhannayand gordonmarino LEIBNIZ Editedbynicholasjolley LEVINAS Editedbysimoncritchleyand robertbernasconi LOCKE Editedbyverechappell MALEBRANCHE Editedbystevennadler MARX Editedbyterrellcarver MEDIEVALPHILOSOPHY Editedbya.s.mcgrade MEDIEVALJEWISHPHILOSOPHY Editedby danielh.frankandoliverleaman MILL Editedbyjohnskorupski NEWTON Editedbyi.bernardcohenand georgee.smith NIETZSCHE Editedbyberndmagnusand kathleenhiggins OCKHAM Editedbypaulvincentspade PASCAL Editedbynicholashammond PEIRCE Editedbycherimisak PLATO Editedbyrichardkraut PLOTINUS Editedbylloydp.gerson QUINE Editedbyrogerf.gibson RAWLS Editedbysamuelfreeman THOMASREID Editedbyterencecuneoand rene´ vanwoudenberg ROUSSEAU Editedbypatrickriley BERTRANDRUSSELL Editedbynicholasgriffin SARTRE Editedbychristinahowells SCHOPENHAUER Editedbychristopherjanaway THESCOTTISHENLIGHTENMENT Editedby alexanderbroadie SPINOZA Editedbydongarrett THESTOICS Editedbybradinwood WITTGENSTEIN Editedbykansslugaand davidstern The Cambridge Companion to ADAM SMITH Edited by Knud Haakonssen UniversityofSussex cambridge university press Cambridge,NewYork,Melbourne,Madrid,CapeTown,Singapore,Sa˜oPaulo CambridgeUniversityPress 40West20thStreet,NewYork,ny10011-4211,usa www.cambridge.org Informationonthistitle:www.cambridge.org/9780521770590 (cid:1)c CambridgeUniversityPress2006 Thispublicationisincopyright.Subjecttostatutoryexception andtotheprovisionsofrelevantcollectivelicensingagreements, noreproductionofanypartmaytakeplacewithout thewrittenpermissionofCambridgeUniversityPress. Firstpublished2006 PrintedintheUnitedStatesofAmerica AcatalogrecordforthispublicationisavailablefromtheBritishLibrary. LibraryofCongressCataloginginPublicationData TheCambridgecompaniontoAdamSmith/editedbyKnudHaakonssen. p. cm. Includesbibliographicalreferencesandindex. isbn-13:978-0-521-77059-0(hardcover) isbn-10:0-521-77059-9(hardcover) isbn-13:978-0-521-77924-1(pbk.) isbn-10:0-521-77924-3(pbk.) 1.Smith,Adam,1723–1790. I.Haakonssen,Knud,1947– II.Title. b1545.z7.c36 2005 192–dc22 2005011910 isbn-13 978-0-521-77059-0hardback isbn-10 0-521-77059-9hardback isbn-13 978-0-521-77924-1paperback isbn-10 0-521-77924-3paperback CambridgeUniversityPresshasnoresponsibilityfor thepersistenceoraccuracyofurlsforexternalor third-partyInternetWebsitesreferredtointhispublication anddoesnotguaranteethatanycontentonsuch Websitesis,orwillremain,accurateorappropriate. contents List of Contributors page ix Method of Citation xiii Introduction: The Coherence of Smith’s Thought 1 knud haakonssen 1. Imagination: Morals, Science, and Arts 22 charles l. griswold, jr. 2. Adam Smith, Belletrist 57 mark salber phillips 3. Adam Smith’s Theory of Language 79 marcelo dascal 4. Smith and Science 112 christopher j. berry 5. Smith on Ingenuity, Pleasure, and the Imitative Arts 136 neil de marchi 6. Sympathy and the Impartial Spectator 158 alexander broadie 7. Virtues, Utility, and Rules 189 robert shaver 8. Adam Smith on Justice, Rights, and Law 214 david lieberman vii viii Contents 9. Self-Interest and Other Interests 246 pratap bhanu mehta 10. Adam Smith and History 270 j. g. a. pocock 11. Adam Smith’s Politics 288 douglas long 12. Adam Smith’s Economics 319 emma rothschild and amartya sen 13. The Legacy of Adam Smith 366 knud haakonssen and donald winch Bibliography 395 Index 401 list of contributors christopher j. berry isProfessorofPoliticalTheoryattheUni- versityofGlasgow.InextensionofhisworkontheScottishEnlight- enment, he is concerned with the philosophical anthropology of politics from a Humean perspective. His books include Hume, Hegel,andHumanNature(1982),HumanNature(1986),TheIdea of Luxury: A Conceptual and Historical Analysis (1994), and The SocialTheoryoftheScottishEnlightenment(1997). alexander broadie, ProfessorofLogicandRhetoricatGlasgow University, has published a dozen books on Scottish philosophy. They include The Scottish Enlightenment: An Anthology (1997), TheCambridgeCompaniontotheScottishEnlightenment(2003), The Scottish Enlightenment: The Historical Age of the Historical Nation (2003), and Thomas Reid on Logic, Rhetoric and the Fine Arts(2005)intheEdinburgh EditionofThomasReid. marcelo dascal is Professor of Philosophy at Tel Aviv Univer- sity. He works on Leibniz, the philosophy of language, cognitive science,andpragmatics.HisbooksincludeLaSe´miologiedeLeib- niz (1978), Leibniz: Language, Signs and Thought (1987), (coed.) LeibnizandAdam(1991),PragmaticsandthePhilosophyofMind (1983),NegotiationandPowerinDialogicInteraction(2001),and InterpretationandUnderstanding(2003). neil de marchi is Professor of Economics at Duke University. He writes on the history of economic ideas and on the history andfunctioningofmarkets,inparticular,marketsforart.Hispub- lications include (coed.) Economic Engagements with Art (1999), (coed.) Higgling: Transactors and Their Markets in the History of ix x ListofContributors Economics(1994),andrecentarticlesontheearlymodernartmar- ketandonMandevilleandSmith. charles l. griswold, jr., is Professor of Philosophy at Boston University. His publications include Self-Knowledge in Plato’s Phaedrus(1986;reprintedin1996);AdamSmithandtheVirtuesof Enlightenment (1999); and articles on a wide spectrum of ancient philosophy and the philosophy of the Enlightenment. He edited PlatonicWritings/PlatonicReadings(1988;reprintedin2002).He isengagedinamajorprojecton“PhilosophyandDiscontents:On ReconciliationwithImperfection.” knud haakonssen, Professor of Intellectual History at the Uni- versityofSussex,formerlyProfessorofPhilosophyatBostonUni- versity, works on early modern natural law theory and on the EnlightenmentinNorthernEurope.HeisgeneraleditorofNatural LawandEnlightenmentClassicsandoftheEdinburghEditionof ThomasReidandeditorofTheCambridgeHistoryofEighteenth- CenturyPhilosophy(2005).HisotherbooksincludeTheScienceof aLegislator(1981)andNaturalLawandMoralPhilosophy(1996). david lieberman is Jefferson E. Peyser Professor of Law and History at the University of California at Berkeley. He works on Bentham and eighteenth-century legal thought, and he has pub- lished extensively in this field, including The Province of Legis- lation Determined: Legal Theory in Eighteenth-Century Britain (1989).HeiscurrentlypreparinganeditionofJeanDeLolme’sThe ConstitutionofEngland. douglas long teaches political science at the University of WesternOntario.HeworksonHume,Smith,Bentham,andmod- ernpoliticalthought.HispublicationsincludeBenthamonLiberty (1977). pratap bhanu mehta is President, Center for Policy Research, Delhi.HepreviouslytaughtatHarvardandJawaharlalNehruUni- versity. He has published widely in areas of political philosophy, constitutionallaw,ethics,andintellectualhistory.Hismostrecent bookisTheBurdenofDemocracy(2003).Abookonmoderncon- stitutionalismwillappearin2005. ListofContributors xi mark salber phillips is the author of Society and Sentiment: Genres of Historical Writing in Britain, 1740–1820 (2000) and coeditor(withGordonSchochet)ofQuestionsofTradition(2004), as well as earlier studies of historical and political thought in the Italian Renaissance. He is Professor of History at Carleton UniversityinOttawa. j. g. a. pocock is Harry C. Black Professor Emeritus of History at the Johns Hopkins University. His works include The Ancient Constitution and the Feudal Law (1957; 2nd ed., 1987); Politics, Language, and Time (1971); The Machiavellian Moment (1975); andVirtue,Commerce,andHistory(1985).Heiscurrentlyworking onBarbarismandReligion,ofwhichthreevolumeshaveappeared so far: The Enlightenment of Edward Gibbon, 1737–1764 (1999), NarrativesofCivilGovernment(1999),andTheFirstDeclineand Fall(2003). emma rothschild, Director of the Centre for History and Eco- nomicsatKing’sCollege,Cambridge,andVisitingProfessorofHis- toryatHarvardUniversity,isaneconomichistorianandhistorian of economic thought. She is the author of Economic Sentiments: AdamSmith,CondorcetandtheEnlightenment(2001),andsheis working on a book about the American Revolution and the East IndiaCompany. amartya sen, LamontUniversityProfessorandProfessorofEco- nomics and Philosophy at Harvard University, was awarded the Nobel Prize in Economics in 1998 for his work on welfare eco- nomics and social choice theory. He has drawn on the writings of Adam Smith in a number of essays, including “Adam Smith’s Prudence” (1986), and books, including Poverty and Famines (1981),OnEthicsandEconomics(1987),andRationalityandFree- dom(2002). robert shaver is Professor of Philosophy at the University of Manitoba.Heworksonethics.RecentpublicationsincludeRatio- nal Egoism (1999); “Welfare and Outcome,” Canadian Journal of Philosophy 32 (2002); and “Principia Then and Now,” Utilitas 15 (2003).