Although the concept of sympathy is absent from the Wealth of Nations, this essay argues that it is the foundation that sustains the free market, gives it its moral limits, and enables its greater efficiency. Recognizing this function, which is not difficult to trace in the Wealth of Nations, allows us to understand why public policies that foster sympathetic relationships lead to greater wealth creation, while those that hinder such relationships impede exchange and reduce wealth. Similarly, when changes brought about by progress or personal ambitions and interests inhibit or distort the free play of sympathetic interaction, the awareness that sympathy is the lifeblood of a free society allows us to adjust public policies and restore the framework of security and order that provides the conditions for prosperity, recognition, and happiness for all.
