Charity’s Visible Hand? Adam Smith’s concept of Philanthropy

Abstract

Most people associate Adam Smith with the concept of the “Invisible Hand” of market relations, or perhaps with the passage from The Wealth of Nations remarking on the “self-interest” of the butcher, baker, and brewer as the source of our dinner. Those who only know Smith from such concepts might be surprised at the important—perhaps even crucial—role played in his overall sociology by the related concept of beneficence. Working with this concept, he develops a theory of charity. Though the word “philanthropy” occurs nowhere in Smith’s massive oeuvre, “charity” appears frequently and is used in much the same way that we currently use the word “philanthropy.” This paper will explore the relationship between these words as implied by Smith’s writings. In the process, it will argue that Smith’s understanding of charity is deeply imbricated with his concepts of beneficence and, yes, self-interest, and will examine how both of these work together within his vision of the importance of virtue in a good life.