Tuesday, January 08, 2013

More Dire Nonsense

'The Invisible Hand' (no other name given) posts on Raising the Invisible Hand HERE 
The “Invisible Hand” is an economic concept developed by economist Adam Smith to explain the natural regulation of a free market that comes about when individuals are left to pursue their own self-interests."
Dire nonsense. 
It was never an “economic concept”.  It was not “developed by Adam Smith”.  It does not “explain” anything about "free markets". 
People left “to pursue their own self-interests” will choose a variety of policies that tend to be mutually contradictory and some of them work against “free markets”.  All those favouring Tariffs, Protections, Monopolies, Prohibitions on rivals, special licenses, government subsidies, paying legislators to represent them in the political system, corrupt trade unions, anti-competitive legislation, smart lawyers and PR spin doctors, and such like, be ashamed of your successes.  
All fellow economists who believe this dire nonsense about Adam Smith's use of the IH metaphor, be doubly ashamed.


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