Book IV of Adam Smith's Wealth of Nations concerns two rival economic theories, Mercantilism and Physiocracy. The latter, François Quesnay's system, occupies only the ninth and final chapter, and it begins with a stunning dismissal. Yet, fifteen pages later, Smith praises this theory to the skies. That cries out for explanation. Like Mercantilism, Smith's system emphasizes commerce, whereas Quesnay's is confined to agriculture. But like Physiocracy, Smith's system is built on individual liberty, whereas Mercantilism is one of government control. Despite (...) his initial put-down, Smith is naturally inclined more toward Quesnay's philosophy. And the main thesis of my paper is to suggest one reason for this that has not previously been brought to light, and that can explain Smith's extravagant praise for it. Quesnay employs a Newtonian scientific method different from the one emphasized in Smith's early ‘Astronomy’ treatise, a method Smith first prominently introduced a decade after his meetings with Quesnay, in Wealth of Nations and Smith's eulogy for Hume, and in the sixth edition of his Theory of Moral Sentiments. (shrink)

Jacob Viner introduced the term ‘sub-rational’ to characterize the faculties – human instinct, sentiment and intuition – that fall between animal instinct and full-blown reason. The Scots considered sympathy both an affective and a physiological link between mind and body, and by natural history, they traced the most foundational societal institutions – language and law, money and property – to a sub-rational origin. Their ‘social evolutionism’ anticipated Darwin's ‘dangerous idea’ that humans differ from the lower animals only in degree, not (...) in kind. Darwin had the ability to ‘trade places in the imagination’, as Adam Smith would say, with plants and animals, and ‘think’ as they do. The trend today is to ‘positivize,’ ‘behaviorize’ and otherwise reduce the sub-rational to the purely biological. My suggestion is that we trade places in the imagination with the Scottish moral scientists and Darwin, and try thinking as they did. (shrink)

Building on work by Popper, Schweber, Nozick, Sober, and others in a still-growing literature, I explore here the conceptual kinship between Adam Smith''s ''invisible hand'' and Darwinian natural selection. I review the historical ties, and examine Ullman -Margalit''s ''constraints'' on invisible-hand accounts, which I later re-apply to natural selection, bringing home the close relationship. These theories share a ''parent'' principle, itself neither biological no politico-economic, that collective order and well-being can emerge parsimoniously from the dispersed action of individuals. The invisible (...) hand operates on ''memes'' the way natural selection operates on genes. Like Darwin''s concept, it brings together traditional opposites, ''nature'' and ''selection,'' forming a saltation-mitigating transition between biological instinct and full-blown conscious design. Herschel''s criterion of confirmation, which Darwin long strove to satisfy, is itself an invisible hand-like meme – a ''Midas effect'' revealing and rewarding the fittest theories, Darwin''s and Smith''s emphatically among them. (shrink)

The Scientific Revolution spawned not just one methodology, but two. We have emphasized Bacon's inductivism at the expense of Galileo's more abstract, sophisticated method of successive approximation, and so have failed to appreciate Galileo's contribution to the ceteris paribus problem in philosophy of science. My purpose here is to help redress this imbalance. I first briefly review the old unsolved problems, and then point out the Baconian basis of ceteris paribus, as this clause is conventionally understood, and its history from (...) Aristotle to twentieth century Positivism. Then I explore Galileo's method of dealing with unwanted impediments, and the more general problem of 'accidents.' I trace his methodology back to Archimedes and forward through the economic theories of Adam Smith (18th century), J. S. Mill (19th) and Milton Friedman (20th). Finally, I point out ways in which I think Galileo's scientific method sheds light on, and provides a partial solution to, the ceteris paribus problem. (shrink)