Adam Smith’s 'Wealth of Nations' Applies to Today’s Economy

At the 2024 Adam Smith Week, Hunter Poe introduced Bart Wilson, professor of economics and law at Chapman University.

Every spring, the Center for Public Choice and Market Process holds Adam Smith Week, which will take place March 23-26 this year. The brainchild of Peter Calcagno, professor of economics and director of the Center for Public Choice and Market Process, Adam Smith Week explores today’s economic topics with Smith’s philosophy top of mind.

“This March marks the 250th anniversary of Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations,” says Calcagno, who notes that Smith’s insights remain as relevant as ever. “Today, many policies echo the mercantilist ideas Smith criticized in 1776 – protecting industries, fearing trade deficits and allowing governments to favor certain firms. Revisiting Smith’s lessons remains essential for building a more prosperous and peaceful global economy.”

While often labeled a champion of free markets, Smith was better described as pro-market rather than pro-business explains Calcagno. The Wealth of Nations was largely a critique of Mercantilism, the dominant economic system of Smith’s time, which treated trade as a zero-sum game and emphasized protecting domestic industries and prioritizing exports over imports. Smith argued that economic growth depends on the division of labor, which is limited by the extent of the market. As markets expand through trade, specialization increases and prosperity grows, which according to Smith is why some nations became wealthy while others remained poor. 

At the upcoming Adam Smith Week, Hunter Poe, a Market Process Scholar from Gilbertsville, Pennsylvania, looks forward to hearing Peter Boetke, distinguished university professor of economics and philosophy at George Mason University, apply Adam Smith theories to today’s economy and compare poverty then and now.

A senior majoring in economics and chemistry, Poe has attended Adam Smith Week every year he has been at the College. One of his favorite talks was by Michael Munger, professor of political science, economic and public policy at Duke University. Munger brought up philosopher Philippa Foot’s trolley problem, a thought experiment in which five people are about to be killed by a runaway trolley, raising the dilemma of whether you would divert the trolley knowing your choice would kill an innocent bystander. Munger explained that in Smith’s book the Theory of Moral Sentiments, Smith described the conflict between human impulses and proper self-government and advocated for a societal understanding of propriety that operates alongside more formal rules and laws. What stood out for Poe was Munger’s position that every decision is a trolley decision and how many politicians pull the lever on something without consideration of the impact.

Poe, a recipient of the Horatio Hughes Memorial Scholarship in Chemistry, came to the College as a chemistry major and decided to double major in chemistry and economics after taking his First Year Experience course with Professor Calcagno.

“I don’t think Professor Calcagno realizes that he kept me at the College,” says Poe, who was going to transfer his freshman year. “He has been a true guide, helping me in countless ways. He told me he wanted what’s best for me and encouraged me to apply to be a Market Process Scholar. I did, and it was life changing.“

Through the mentor program, I grew professionally,” says Poe, who notes that a lot of college students don’t understand business etiquette. “I learned a lot about controversial issues happening in the world today and what drives the thought process. The experience has helped me develop my own ideas and to understand different perspectives, and I owe it all to my amazing professor and mentor, Professor Calcagno.”

Poe encourages everyone to go to the Adam Smith Week talks and learn about timely economic topics covering everything from debt to inflation.

“You don’t need to know Adam Smith to learn about the topics and principles covered,” he says. “There are some very challenging topics that we all as a society need to discuss. By addressing the issues, we can move closer to a solution.”