Loading...The free market’s ‘invisible hand’ will right all wrongs
The idea by Adam Smith that, left to itself, the market would correct itself every time. In The Wealth Of Nations, one of the founding texts of economic theory, Smith argued that when individuals act in a purely self-interested way, society as a whole can benefit too.
However, unknown to many modern capitalists, he also believed that the government should intervene where necessary and as the recent economic crisis demonstrates when governments stepped in to bail out the banks – a completely free market would destroy society.
Not entirely Smith’s fault but he should have known his words would have been twisted by those with less scruples and more to lose.
I can highly recommend Jeff Madrick’s book “Seven Bad Ideas: How Mainstream Economists Have Damaged America and the World.” reviewed here https://www.huffpost.com/entry/the-invisible-hand-conver_b_6590420
Smith has been debunked so many times already. You just got to read up on what has happened since his ideas were championed by those in power – and what happens to people who try to correct this basic mistake. Go Chomsky and others who bother learning and being compassionate, which is also something Smith had problems with.
more here, agreed btw.