Sympathy in Economics: From Personal Connections to Global Markets
Classified in Philosophy and ethics
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The Role of Sympathy in Economics
Adam Smith's Perspective on Sympathy
Adam Smith described sympathy as an automatic reaction that influences our economic behavior. He observed that people tend to reflect the emotions of others, feeling happiness or pain in response to the emotions displayed by those around them. However, Smith noted that sympathy has its limits, as we tend to sympathize more with those closer to us, such as family and friends, than with strangers.
For example, Smith argued that a person would be more distressed by the loss of their own finger than by an earthquake in a distant country, simply because they lack a personal connection to the victims of the earthquake. This limitation of sympathy, according to Smith, influences our... Continue reading "Sympathy in Economics: From Personal Connections to Global Markets" »