Wrong Twice is Still Wrong

A post on News 24 HERE 

“Nationalisation is not the bogeyman!”

“One writer even asked ‘where did Malema get his economics doctorate to preach such a policy’?  But in the writer’s defence, he gave a grand breakdown on why nationalisation was impractical. He gave the over-used capitalist argument and summed his proposal on Adam Smith’s 'free market' system guided by an invisible hand where everything just automatically adjusts back to equilibrium. I too think that Adam Smith believed in magic.”

Comment

Adam Smith did not have “'free market' system guided by an invisible hand where everything just automatically adjusts back to equilibrium.”   That is a modern economist’s myth, conveniently created to justify (unnecessarily) the plain fact that freer markets are preferred to state-run economies.   Adam Smith’s name is wrongly attributed to give scholarly credibility to what was a 20th-century proposition during the Cold War against the obvious failures of Soviet Central planning.

There is no evidence that Adam Smith believed in “magic”.