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Higher and lower virtues in commercial society

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  • Lisa Herzog

    (New College, Oxford, UK)

Abstract

Motivation crowding out can lead to a reduction of ‘higher’ virtues, such as altruism or public spirit, in market contexts. This article discusses the role of virtue in the moral and economic theory of Adam Smith. It argues that because Smith’s account of commercial society is based on ‘lower’ virtue, ‘higher’ virtue has a precarious place in it; this phenomenon is structurally similar to motivation crowding out. The article analyzes and systematizes the ways in which Smith builds on ‘contrivances of nature’ in order to solve the problems of limited self-command and limited knowledge. As recent research has shown, a clear separation of different social spheres can help to reduce the risk of motivation crowding out and preserve a place for ‘higher virtue’ in commercial society. The conclusion reflects on the performative power of economics, arguing that the one-sided focus on models of ‘economic man’ should be embedded in a larger context.

Suggested Citation

  • Lisa Herzog, 2011. "Higher and lower virtues in commercial society," Politics, Philosophy & Economics, , vol. 10(4), pages 370-395, November.
    • Handle: RePEc:sae:pophec:v:10:y:2011:i:4:p:370-395
    DOI: 10.1177/1470594X10386564
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    References listed on IDEAS

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