Adam Smith, Labour Division and Fraternité: Competition vs. Social Market Economy

Modern economies are characterized by the division of labour at firm level, in the national economies and at international level, through the process of globalization. Following Adam Smith’s theoretical contribution, mainstream economics describes such an economy as a set of individuals and firms interacting in the markets. In this paper, we investigate the concept of labour division and the selfish view of individuals considered in standard economics. In particular, we discuss the potential impact of people’s greater awareness of the fact that each individual actually works ‘for others’, while his/her welfare largely depends on the work of other individuals. This awareness may lead to the development of gratitude on the consumer side and of social responsibility on the productive side. The issue is briefly analyzed also from a structural point of view, with reference to a competitive economy of the US type and to a social market economy of the European type.