LESSONS FROM THE GLOBAL FINANCIAL CRISIS: THE RELEVANCE OF ADAM SMITH ON MORALITY AND FREE MARKETS

Richard M. Morgan

Paperback, 105 pages, isbn 9781921421303

Retail Price $19.95

With a Preface from Ian M. McDonald, University of Melbourne.

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Adam Smith was an advocate of the free market, however his first work, The Theory of Moral Sentiments, was on ethics and was widely acclaimed at the time. Commentators have tended to review this work as separate to his work on political economy. However the global financial crisis has shown the relevance of morality and the free market. Whilst The Wealth of Nations is concerned with political economy, Smith’s pointed attacks on exploitation and greed reflect the ethics outlined in his
first work.

Smith’s critics ignore the constructive role he proposed for government, which included ensuring the provision of education and protection of society by regulating the banking system. He stressed however that government regulations be kept to
a minimum.

Since The Wealth of Nations, the per capita income in the UK has risen 16 times and the most successful countries have been those pursuing free market policies. Adam Smith’s work is extremely relevant to understanding the global financial crisis and to setting appropriate policies for the future.

“A timely and very readable monograph that reminds us of what Adam Smith really said about free markets.”
– Professor R. R. Officer

“Lucid, concise, yet comprehensive - an indispensable guide to Adam Smith’s timeless exposition of the underlying morality of the competitive market economy.”
– Hon Jim Carlton AO

“In light of the 2008 financial crisis, this book reminds us of how relevant Smith’s thought remains as a pathway to the future that avoids the errors of the recent past.”
– Samuel Gregg, Director of Research, Acton Institute

“In this important and elegant work Richard Morgan explains the continuing relevance of Adam Smith and why it was governments, not Smith, that caused the global financial crisis.”
– John Roskam, Director of the Institute of Public Affairs

“Adam Smith’s insights are just as relevant today and this book is an excellent review of his works. It is easy to read and is enlightening.”
– John Dahlsen, Company Director

Richard Morgan is Chairman of BPC Holdings Pty Limited, a private company with interests in Australian agri-business and venture capital. He had a career in industry and was most recently General Manager of the Fertilizer Division of WMC Limited, Deputy Chairman of WMC Fertilizer Limited and Chairman of Hi Fert Pty Limited.

He has served as a Director and Treasurer of the Victorian Chamber of Commerce and Industry. He was a Council Member and National Treasurer of the Australian Institute of Agriculture Science and Technology and was made a Fellow of the Institute for his contribution to the Australian Fertilizer Industry. He served as Council Member of Geelong Grammar School and the Australia Institute of International Affairs Victorian Branch. He has also been past National Chairman of the Australian Red Cross Society and a member of The Australian Red Cross Blood Service Board. He has degrees in Agricultural Science and Commerce and has been a tutor of Economics at The Faculty of Economics and Commerce, The University of Melbourne.