Tuesday, August 02, 2011

Once More With Feeling

Once again a reference to John Nash in “Beautiful Mind" that libels Adam Smith (HERE):

Adam Smith Was Wrong

This scene from A Beautiful Mind is a eureka moment in economics. It debunks the greed is good theory. The way to maximize your benefit is not just seek your own self interest but to seek a way that benefits the group as well.

Gavin Kennedy says: August 2, 2011 at 3:03 pm:

Sorry, but Adam Smith was right because he never made such a statement as “just seek your own self interest”, but he did say specifically that you should “address the self love” of “the butcher, brewer, and baker” when seeking your “dinner” (Wealth Of Nations, Book I, chapter ii, paragraph 2: page 27).

In short, and generally (and as I have posted on Lost Legacy several times), you serve your own self-interest best by serving the self-interests of other people.

The script writer got it wrong, secondhand from modern economists, who like the script writer had not read Wealth Of Nations either.

[Postscript: I am all in favour of "beyond left and right']

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