Dissolving the Chimera of the ‘Adam Smith Problem’

In The Wealth of Nations, Adam Smith set out his influential theory that societies achieve prosperity by securing the freedom of individuals to pursue their own end by the means they choose within a framework of rules of justice. In his earlier work The Theory of Moral Sentiments, Smith developed his thesis about the origins of our moral sentiments and the emergence of rules of justice. The socalled ‘Adam Smith Problem’ concerns the perceived inconsistency between Smith’s defence of selfinterest in the Wealth of Nations and his emphasis of sympathy as the origin of moral sentiments in the earlier work. The existence of the ‘Adam Smith Problem’ has been contested by many writers. The present author provides a number of new arguments to demonstrate the illusory nature of the problem by revisiting the key elements Smith’s moral theory. The author argues that the problem dissolves when the role of justice in providing the conditions of free trade is understood. Smith’s tirade against wealth worship is explained as part of his defence of justice and not a condemnation of wealth accumulation. According to this reading, the Theory of Moral Sentiments is a powerful statement of the moral basis of capitalism.

Securing Constitutional Government: The Perpetual Challenge

Constitutional government is an ideal and like all ideals can only be achieved as an approximation. Even those countries that appear to be near the ideal are revealed on examination to be not so near. Constitutional government, to the extent it is achieved reflects a state of affairs. It remains under constant threat from power seekers, ideological opponents, ill-informed social engineers and manipulative special interests. It is also being eroded through the serious depletion of social capital in the post-industrial era that weakens the institutional foundations of constitutional government (Fukuyama, 1999). In other countries, economic circumstances, cultural constraints and entrenched ruling classes create seemingly intractable obstacles to the attainment of acceptable levels of constitutional government. It is a predicament that seriously harms not just the unfortunate peoples of these countries but, as I argue presently, also the industrialised democracies of the world. Hence deepening our understanding of the conditions that make constitutional government possible remains an intellectual task of the highest priority.constitutional government; rule of law; institutions

Securing Constitutional Government: The Perpetual Challenge.

The paper discusses four conditions required for the maintenance of constitutional government, identifying them as the dominance of a particular conception of constitutional government, its official recognition and implementation by a written or traditional constitution, the existence of an institutional matrix that translates the constitution into the experience of the people and the achievement of economic conditions that sustain the institutional foundations of constitutionalism. The author attributes the decline in the classical understanding of constitutionalism to both public choice dynamics as well as to intellectual reconstructions of key concepts such as law, justice, and freedom that were designed to facilitate the welfare state without formally forsaking the rule of law ideal. The paper proceeds to focus on the social disruption of the late 20th century that weakened the institutional foundations of constitutionalism and the legal and economic causes of this development. It cautions against over-reliance on the self-correcting potential of social systems and concludes with thoughts on strategies appropriate to the perpetual struggle to maintain constitutional government.

Environmentalism versus Constitutionalism: a Contest without Winners

The New Zealand Resource Management Act imposes a system for micro-managing the environment. The Act is typical of current state approaches to environmental protection that places heavy reliance on command and control systems in preference to market based systems. Such laws impact heavily on property rights and due process and generally undermine the rule of law by creating centres of arbitrary authority. They also prevent the harnessing of widely dispersed knowledge that is vital to the determination of the costs and benefits of conservation and the development of realistic policy. These measures have been justified on the basis of the ‘precautionary principle’ and the concept of sustainable development and they are supported by claims of scientific consensus about major environmental issues such as climate change. The essay questions this consensus and argues that the precautionary principle and sustainable development are vacuous but dangerous doctrines. The apocalyptic and utopian visions of conservation are challenged and an evolutionary conceptualisation of the environment is proposed. The essay discusses the importance of property rights and compensation for takings as means of advancing legitimate environmental goals and argues that the New Zealand Resource Management Act is a deeply flawed model that imposes serious economic and constitutional costs that ultimately will weaken society’s capacity to achieve those goals.

Environmentalism versus constitutionalism: A contest without winners

The New Zealand Resource Management Act imposes a system for micro-managing the environment. The Act is typical of current state approaches to environmental protection that places heavy reliance on command and control systems in preference to market based systems. Such laws impact heavily on property rights and due process and generally undermine the rule of law by creating centres of arbitrary authority. They also prevent the harnessing of widely dispersed knowledge that is vital to the determination of the costs and benefits of conservation and the development of realistic policy. These measures have been justified on the basis of the ‘precautionary principle’ and the concept of sustainable development and they are supported by claims of scientific consensus about major environmental issues such as climate change. The essay questions this consensus and argues that the precautionary principle and sustainable development are vacuous but dangerous doctrines. The apocalyptic and utopian visions of conservation are challenged and an evolutionary conceptualisation of the environment is proposed. The essay discusses the importance of property rights and compensation for takings as means of advancing legitimate environmental goals and argues that the New Zealand Resource Management Act is a deeply flawed model that imposes serious economic and constitutional costs that ultimately will weaken society’s capacity to achieve those goals