Saturday, December 20, 2008

It's the Fault of the Invisible Hand!

From an editorial at HERE:

“Adam Smith’s “invisible hand” should be doing its work of finding the place where supply and demand intersect; it shouldn’t be reaching for the wallets of hardworking investors.”

Clichéd journalism inevitably reads as crass; in this case it’s meaningless too.

Adam Smith’s use of the metaphor had nothing to do with supply and demand analysis or “reaching for the wallets of hardworking investors” (‘hardworking’ as an adjective is more than overworked this season too).

I can see a first year economics student objecting to her tutor’s critical remarks about her incorrect answer to a simple supply and demand question with the response: ‘Not my fault; the invisible hand got it wrong again!’



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