Adam Smith's mistake

Library Journal

The coauthor of Humanistic Economics (Boostrap Pr., 1988) asserts that, by enshrining self-interest as the core of economics, Smith mistakenly detoured the discipline into a moral dead end. He points to the abuses of the Industrial Revolution in England and the rise of the socially irresponsible ``robber barons'' in the United States as examples of the ethical void at the heart of the laissez-faire philosophy. After examining Smith and his critics, Lux attempts to demonstrate the benefits of benevolence in economic relationships. Confined primarily to pre-20th century examples and authors, the volume is somewhat limited in scope and selective in interpretation. Still, it can be recommended as an example of the humanistic critique of conventional economics.-- Richard C. Schiming, Mankato State Univ., Minn.