Humanomics: Moral Sentiments and the Wealth of Nations for the Twenty-First Century

Nobel Prize-winning economist Vernon L. Smith and Bart J. Wilson's book Humanomics re-humanizes twenty-first century economics by integrating insights from Adam Smith's model of sociality with sentiments, fellow feeling, and a sense of propriety, shaping economic betterment as a science of human beings.

Format: Paperback / softback
Length: 234 pages
Publication date: 24 January 2019
Publisher: Cambridge University Press

While neo-classical analysis excels in studying impersonal exchange in markets, it falls short in explaining the intricacies of human behavior in personal relationships with family, neighbors, and friends. In their groundbreaking work, Humanomics, Nobel Prize-winning economist Vernon L. Smith and his long-time co-author Bart J. Wilson take us on a journey back to the founder of modern economics, Adam Smith. Over the past 250 years, economists have strayed from the comprehensive understanding of human emotions, thoughts, and knowledge in everyday life. Smith and Wilson reclaim the essence of human sociality by infusing Adam Smith's model with sentiments, fellow feeling, and a sense of propriety—the building blocks of human relationships. By integrating insights from The Theory of Moral Sentiments and The Wealth of Nations into contemporary empirical analysis, this book reshapes economic betterment as a science of human beings.

The neo-classical approach to economics, which dominates the field, focuses primarily on analyzing impersonal market exchanges. It provides valuable insights into the mechanisms of supply and demand, price formation, and market efficiency. However, it fails to capture the complex and nuanced aspects of human behavior in personal relationships.

In Humanomics, Smith and Wilson aim to bridge this gap by reintroducing the human element into economics. They argue that Adam Smith's model of sociality, which emphasizes the importance of sentiments, fellow feeling, and a sense of propriety, can provide a framework for re-humanizing twenty-first-century economics. By incorporating these qualities into economic analysis, scholars can gain a deeper understanding of the motivations and behaviors of individuals and organizations.

One of the key insights of Humanomics is that economics is not merely a mathematical exercise but a study of human beings. Smith and Wilson emphasize the importance of recognizing the emotional and social dimensions of economic decisions. They argue that individuals are not solely driven by self-interest but also by a desire for social recognition, reciprocity, and a sense of belonging. This understanding helps to explain why people engage in cooperative behaviors, such as teamwork, trust, and cooperation, and why they are willing to sacrifice individual gains for the collective good.

Another important aspect of Humanomics is its integration of insights from The Theory of Moral Sentiments and The Wealth of Nations. Smith and Wilson draw upon these classic works to illustrate how sentiments and fellow feeling can shape economic behavior. They show how individuals are motivated by a desire to improve their social standing, gain respect from others, and contribute to the well-being of society. This understanding provides a foundation for developing policies that promote social welfare, such as social security programs, education initiatives, and environmental protection.

In addition to its theoretical contributions, Humanomics offers practical insights into economic development and policy. Smith and Wilson demonstrate how economic analysis can be used to identify the root causes of social inequality, such as discrimination, poverty, and lack of access to resources. By understanding these factors, policymakers can develop targeted interventions to address these issues and promote inclusive growth.

Furthermore, Humanomics emphasizes the importance of empathy and compassion in economic decision-making. Smith and Wilson argue that individuals are not isolated actors but are part of a larger social network. They recognize that economic decisions have consequences not only for individuals but also for society as a whole. By considering the impact of economic policies on different groups of people, policymakers can develop policies that promote social justice and equity.

In conclusion, Humanomics is a groundbreaking work that offers a fresh perspective on economics by reintroducing the human element into the field. Through its integration of insights from Adam Smith and other classical economists, as well as contemporary empirical analysis, the book provides a comprehensive understanding of human behavior in personal relationships and its implications for economic development and policy. By re-humanizing economics, Smith and Wilson hope to inspire a new generation of scholars to approach economic problems with empathy, compassion, and a sense of social responsibility.

Weight: 352g
Dimension: 152 x 227 x 19 (mm)
ISBN-13: 9781316648810