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The speculator (who deals in public debt) appears thus as the antipode of the manufacturer: lack of skills, knowledge, and care for productive capital transforms selfinterest into selfishness, endangers the harmony of interests, and enfeebles the state. In a conceptual scheme based on the division of labor and on socially ranked, productive talents, the speculator cannot be a figure of capitalism, but rather its nemesis.

This conclusion is reached on the grounds of a postulated similarity between economic life and the public sphere: both need exemplary characters and good passions. These latter are understood as a state of knowledge (skills, dispositions) which orients economic actors toward each other, generating thus emotional attachment and ethical norms of economic behavior. For Smith, there is no substantive difference between political and economic heroes. A prosperous society needs examples of the latter. The imitation of positive examples cannot take place without making visible these figures to all at once. Yet the consequences of bad passions would have to be made visible too, showing what happens when lack of knowledge and care dominate economic action. This situates the speculator outside the boundaries of public life: a speculator cannot relate to other economic figures and to the public but in a negative way. It is rather a barrier which is erected here. The incompatibility between speculators and public life, the lack of harmony between selfinterest and public interest make it very difficult to conceive a legitimate way in which financial speculation can be related to the society at large.

Finance Antipode, Conceptual Scheme, Division Of Labor, Economic Action, Economic Actors, Economic Behavior, Economic Figures, Economic Life, Emotional Attachment, Ethical Norms, Financial Speculation, Harmony Of Interests, Knowledge Skills, Lack Of Knowledge, Productive Capital, Prosperous Society, Public Debt, Public Sphere, Speculator, Substantive Difference

The manufacturer is skilled and innovative: he has a deep knowledge of production processes and of local conditions, is geared toward permanent improvement, and is interested in longterm development. Of all social types, wrote Smith, the “master manufacturer” plays the central role; the merchant, another important figure, is subordinated to the manufacturer in the social order of wealth. Manufacturers have the best knowledge of their own interest, a selfinterest which is the very spirit of capitalism: “During their whole lives (they) are engaged in plans and projects, they have frequently more acuteness of understanding than the country gentlemen. . . . Their superiority over the country gentleman is not so much in their knowledge of the public interest, as in having a better knowledge of their own interest than he has of his” .

For Smith, then, the manufacturer is superior to all other social characters generated by the capitalist economy. He is at the center of a solar system in which the merchant, the worker, and the country gentleman revolve around him like planets revolving on different orbits around the sun.

Some are nearer, and some are farther away, profiting in different degrees from the energy it emanates. How can the centrality of this construct be conceptually grounded in a way consonant with empirical observations? Two concepts support the construct: the first is that of the division of labor and the second that of original sensations, which engender selfinterest.

Let us begin with the division of labor. While human talents and inclinations are not identical with or equal to each other, they are not naturally unequal either.

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In the eighteenth century, “capitalist” was understood by social philosophers, by economic thinkers, and by the educated public as a person who invests money in public debt or in stock, and expects an annuity or a dividend. A capitalist was someone who did not have to work for a living, nor live off land revenue, nor have profits from manufacture or trade. His revenue was derived from the financial securities he owned and traded. At the dawn of the modern era, being a capitalist meant being an investor . Only toward the end of the century did Adam Smith’s Wealth of Nations give a new, abstract twist to the term “capitalist.”

A superficial observer could say that Adam Smith has not depicted a central figure of capitalism, being too busy with the grand tableau of the national economy. Yet Smith’s economic landscape is not empty, but populated by a whole array of figures, some of which are of central importance. Increasing the nation’s wealth is, in Adam Smith’s eyes, the ultimate aim of economic life. While agriculture, trade, and other economic activities may contribute to increases in wealth, manufacture remains the key branch of the economy. Great nations excel in manufacture , this latter, superior in skills and productivity to agriculture, is the core of the economy. All other economic activities—like banking and trade—are subordinated to increasing the industry of the country.

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