More than 300 people attended the inaugural conference of the Center for Commerce and Freedom and heard 97-year-old Nobel Prize laureate Vernon Smith discuss the works and ideas of the economist Adam Smith on April 5 in the Searle Center. The new center of the business, economics, and accounting department features a fellowship, paper publication, lectures, and this annual conference.
Adam Smith’s “Theory of Moral Sentiments” reflects his economic views more comprehensively than his famous book “Wealth of Nations,” Vernon Smith said in the final lecture of the conference.
“I encourage people to read ‘Theory of Moral Sentiments’ because it’s about you and me and our neighbors,” Smith said. “It’s about our experiences to each other, and how we put ourselves in the position of what others are thinking.”
Vernon Smith explained Adam Smith’s term “fellow feeling” as the basis for societal functions. He divided this “fellow feeling” into beneficence, which must be voluntary, and justice, which restrains harm against others to flourish happiness.
“Beneficence must be freely offered, can’t be forced,” Vernon Smith said. “The poor man has no right to force the rich man to transfer anything to him. He may do it voluntarily”
For Adam Smith, economics reflects ordinary people acting in ordinary society and originates with ancient systems of trade and survival which did not depend on government action. He termed this a theory of reciprocity, which balances his theory of self interest—often referenced out of context.
“Adam Smith distinguishes between being self-interested and acting self-interested,” Vernon Smith said. “Modern theory does not separate these.”
Charles Steele, associate professor of economics and Detweiller chair of economics and business administration, said he appreciated Smith’s insights on “Theory of Moral Sentiments” because of its direct application to Hillsdale’s economics department.
In the opening panel, John Gibson, founder and former CEO of the video game company Tripwire Interactive, spoke on social terrorism and woke agendas in business companies. In 2021, after tweeting his support for a pro-life bill in Texas, Gibson found himself expelled from his own company two days later.
“Woke ideology, cancel culture, and social terrorism are rampant in America, destroying lives, damaging companies, and costing shareholders value,” Gibson said.
Gibson cautioned business leaders to implement safeguard plans in human resource departments as protection against any future social-expectation threats companies may face.
“The HR department should let employees know that viewpoint discrimination against people with different social or political beliefs will not be tolerated,” Gibson said. “Employees that threaten to leave because they disagree with another employee’s social or political beliefs should be released immediately. This sends a message to the employees that internal cancel attacks will not be successful and they shouldn’t try them.”
Being clear up-front with potential employees will protect the company long-term, Gibson said.
“As you would for any risk, make a plan in advance for how you would handle the situation well when it arises,” Gibson said. “You can protect yourself and your interests through proactive planning, grounded decision making, and thoughtful action.”
Following the lunch, John Seiffertt, associate professor of computer science, spoke on “AI, Business, and Liberty.”
“Dr. Seiffertt’s lecture on AI was excellent,” Steele said. “He covered the history of AI, what it is, what developments it will bring, and why and how we should embrace it, all from an extremely well informed perspective. His talk was one of the events most mentioned in comments I’ve received, with rave reviews.”
Junior Zach Ponraj attended this portion of the conference to hear Seiffertt’s thoughts based on his expertise in computer science.
“I am very intrigued by the AI conversation and its sociological implications,” Ponraj said. “Although I had quite a few qualms with his overall perspective, it was still insightful to hear someone who specializes in the field share his perspective on AI. I wish the talk had covered more of the moral and ethical implications of AI.”
Steele said he has received much positive feedback and believes the conference was successful in its combination of business, economics, and liberal arts.
“We attempted to have our discussions and lectures meet high intellectual standards and also propose solutions,” Steele said. “We wanted to keep an upbeat tone. I think we succeeded.”
He said he hopes to integrate even more cross-departmental integration, including further delving into the sciences, which the AI presentation addressed.
“I’m always encouraged when I see the college hosting events attempting to bridge the gap between academia and its practical application,” Ponraj said.
Steele said the conference started important conversations that should continue at future events.
“Our country faces some very serious problems, and we want to generate ideas for solving them,” Steele said. “We need careful serious thinking about the future and about the very real problems we face. But problems are opportunities, and this conference can help us discover them. Thinking this way cultivates a positive mindset. This is a first step in fixing what ails us.”
