Competitiveness and Sustainability in Smithian Economic Thinking

The present study reviews the economic perspective of the great philosopher Adam Smith regarding the economic issues of his time. Both of his works, The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations, emphasize the necessity of individual freedom for human beings to develop their professional personality within an economic system based on equality and liberty. The state plays an extremely important role, being responsible for ensuring an efficient legal framework so that the nation’s wealth can grow through real competitiveness and sustainability. It is well known that the economic system can function at a high level only in a civilized society, without the state acting as an arbitrator through brutal intervention to impose order on society. Furthermore, the economic system must not only defend public goods and guarantee private and public property, with a social program focused on supporting disadvantaged social classes, but also uphold individual freedom and national security.