Abstract

Smith asks whether patriotism and cosmopolitanism spring from the same source. If they do, we face two anomalies. First, we should expect a British subject to love France more than Great Britain because France has a larger population than Great Britain. Second, we should expect a British subject to love France more than a far-away country such as China given that the British subject is more familiar with the French than with the Chinese people. Both expectations are factually untrue. This led Smith to reject the patriotism-cosmopolitanism continuum thesis. The love of country must spring from a source that is unrelated to the love of humankind. Nonetheless, neither kind of love can be reduced to substantive utility that informs the economist’s utility function and the social welfare function. Substantive utility appears as self-interest and other-interest (altruism). The altruist preference varies in intensity, depending on familiarity: people are ready to help more familiar people than less familiar ones. What complicates the discussion is that Smith uses the same term “familiarity” to discuss varying degrees of love: people tend to love more familiar people than less familiar ones. This paper sheds light on Smith’s confusing concept “universal benevolence”—which is best understood as the love of humankind.