Abstract

_ Source: _Volume 5, Issue 2, pp 251 - 272 The old _Das Adam Smith Problem_ is no longer tenable. Few today believe that Smith postulates two contradictory principles of human action: one in the _Wealth of Nations_ and another in the _Theory of Moral Sentiments_. Nevertheless, an Adam Smith problem of sorts endures: there is still no widely agreed version of what it is that links these two texts, aside from their common author; no widely agreed version of how, if at all, Smith's postulation of self-interest as the organising principle of economic activity fits in with his wider moral-ethical concerns. We argue that the enduring Adam Smith problem may be solved by recourse to a realist perspective that recognises the different levels of social reality to which Smith refers in his discourse. Essential to Smith, we try to show, is the action-theoretic distinction between motive and capacity; between a typology of empirical human acts, on the one hand—self-love and benevolence in Smiths terminology—and the condition of possibility of all human action—what Smith calls the sympathetic principle—on the other