what is the biggest contribution of Theory Moral sentiments in our economy?
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Okay.......... here we go! Many people believe Smith to be the founder of modern economics (somehow, in today's world I'm not so sure that's a good thing). Anyway, his main contribution has been to build a theory that is both logical and coherent of how the economy works based on the law of demand.
His main argument for the theory is that is people are able to imagine or identify with what others are going through (think suffering here), they will also be able to empathize with their situations. This type of identification also enables us to feel their experiences and hardships, but to pursue their interests along with our own. His theory supports the idea that prosperity is necessary for peace....... thus, prosperity may also be something that will encourage better behavior.
I hope this helped...........
The Theory of Moral Sentiments