Through the ages, Adam Smith's (1723-1790) two masterpieces, The Wealth of Nations (1776) and The Theory of Moral Sentiments (1759) have sparked controversies. These controversies have arisen due to Smith's emphasis in The Wealth of Nations that everyone should strive to develop self-interests; yet in The Theory of Moral Sentiments, Smith emphasized the importance of the concept of interpersonal "sympathy". Thus, some scholars believe that Smith's former emphasis on "self-interest" and latter emphasis on "altruism" are severely divergent and contradictory. Some scholars refer to this inconsistency as the "Adam Smith Problem". Therefore, the purpose of this article is to explore whether the so-called "Adam Smith Problem" truly exists. Is Smith's concept of "sympathy" in The Theory of Moral Sentiments really a statement of altruism or does it encompass self-interest? This paper explores this issue in four parts. First, this paper explains what the "Adam Smith Problem" is. Second, it explores whether the "Adam Smith Problem" truly exists. Third, this paper discusses whether the concept of sympathy in The Theory of Moral Sentiments is motivated by altruistic consideration, or by self-interest. The final portion of this paper asks that if the motivation is self-interest, then what is the significance and value of this theory.
