Invisible hand - Revision history

MayGodBless: Undo revision 1896179 by Cwihfehihief (talk)

2022-10-27T22:49:22Z

Undo revision 1896179 by Cwihfehihief (talk)

Can't load revision 1896259

Cwihfehihief at 22:23, October 27, 2022

2022-10-27T22:23:10Z

Can't load revision 1896179

JayHarper: Added quote

2015-10-29T22:39:00Z

Added quote

VargasMilan at 21:32, October 26, 2015

2015-10-26T21:32:39Z

JayHarper: Copyedit (minor)

2015-10-26T19:00:33Z

Copyedit (minor)

Ed Poor: another version of what is basically the same quote

2013-05-06T03:27:24Z

another version of what is basically the same quote

Toadaron: Market failures

2011-10-17T00:50:18Z

Market failures

AlaskanEconomy: I haven't ever read anything about this, but I believe that original research can be added

2011-02-23T01:26:05Z

I haven't ever read anything about this, but I believe that original research can be added

AlaskanEconomy at 20:35, February 5, 2011

2011-02-05T20:35:45Z

AlaskanEconomy: It's not a theorized force, if it were then the hand would be visible

2011-02-05T20:33:12Z

It's not a theorized force, if it were then the hand would be visible

@@ Line 9: / Line 9: @@
 :"[B]y directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an ''invisible hand'' to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. ''By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.'' I have never known much good done by those who affected to trade for the public good." (Emphasis added)
-However, the occurrence of [[market failure]]s suggest that this is not always true. In circumstances where property rights are not well-defined, firms or individuals have market power, or there is incomplete information, each [[economic actor]] acting in their own self-interest does not result in the socially optimal outcome. One such example is the [[tragedy of the commons]].
+However, the occurrence of [[market failure]]s suggest that this is not always true. In circumstances where property rights are not well-defined, firms or individuals have market power, or there is incomplete information, each [[economic actor]] acting in their own self-interest does not result in the socially optimal outcome. One such example is the [[tragedy of the commons]]. In an interview with British [[socialist]] [[Owen Jones]], the [[ex-atheist]] [[Peter Hitchens]] spoke of the "invisible hand" when saying: "I'm not that keen on the [[free market]] consensus, either. ... [Moral and social liberalism] are attempts to construct some kind of total worldview without [[religion]]. The market, for a lot of nominal Conservatives (who aren't actually conservatives at all, but are in general [[liberals]]), the market has become substitute for God. They see Adam Smith's hidden hand as as a kind of [[divine providence]]."<ref>[https://youtu.be/wrwuk6NoMv8?t=771 Owen Jones meets Peter Hitchens - full length (12:51 to 13:21)] ''[[YouTube]]''.</ref>
 == The invisible hand in nature ==

@@ Line 3: / Line 3: @@
 * Every individual necessarily labors to render the annual revenue of society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is, in this, as in many other cases, led by an invisible hand to promote an end which was not part of his intention.<ref>[http://quotes.cat-v.org/economics]</ref>
-Smith's promotion and popularization of the concept in his 1776 book [[The Wealth of Nations]], and it propelled the [[British Empire]] to become the greatest power in the history of the world in the 19th century.
+Smith's promotion and popularization of the concept in his 1776 book ''[[The Wealth of Nations]]'', and it propelled the [[British Empire]] to become the greatest power in the history of the world in the 19th century.
 He theorized that the self-interest of individuals acting independently will lead to a socially optimal outcome:<ref>[http://www.econlib.org/LIBRARY/Smith/smWN13.html ''Wealth of Nations'', Book IV, Chapter 2]</ref>

@@ Line 1: / Line 1: @@
 The '''invisible hand''' is [[Adam Smith]]'s name for the [[economic]] trend towards productivity and efficiency that results when [[government]] stops interfering in markets trying to steer them and allows individuals and corporations to fend for themselves and reap the benefits of their own hard work and innovation.
-* Every individual necessarily labors to render the annual revenue of society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is, in this, as in many other cases, led by an invisible hand to promote an end which was not part of his intention. [http://quotes.cat-v.org/economics]
+* Every individual necessarily labors to render the annual revenue of society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is, in this, as in many other cases, led by an invisible hand to promote an end which was not part of his intention.<ref>[http://quotes.cat-v.org/economics]</ref>
 Smith's promotion and popularization of the concept in his 1776 book [[The Wealth of Nations]], and it propelled the [[British Empire]] to become the greatest power in the history of the world in the 19th century.
@@ Line 14: / Line 14: @@
 The invisible hand is seen outside of an economic context in nature. There is no [[EPA]] appointed [[czar]] who insists that [[fish]] only be found in rivers lakes and ponds, and no bureaucrat that dictates that the kingfishers only be found where fish live. A complete ecosystem can assemble from [[Great Flood|wreckage]] and have the illusion of having been assembled together with out having ever experienced disaster.
 == References ==
@@ Line 21: / Line 20: @@
 == See also ==
 * [[Invisible Hand of Marriage]]
-* [[ Best of the Public ]]
+* [[Best of the Public]]
 [[Category:Economics]]

← Older revision		Revision as of 03:27, May 6, 2013
Line 1:		Line 1:
	The '''invisible hand''' is [[Adam Smith]]'s name for the [[economic]] trend towards productivity and efficiency that results when [[government]] stops interfering in markets trying to steer them and allows individuals and corporations to fend for themselves and reap the benefits of their own hard work and innovation.		The '''invisible hand''' is [[Adam Smith]]'s name for the [[economic]] trend towards productivity and efficiency that results when [[government]] stops interfering in markets trying to steer them and allows individuals and corporations to fend for themselves and reap the benefits of their own hard work and innovation.
		+
		+	* Every individual necessarily labors to render the annual revenue of society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is, in this, as in many other cases, led by an invisible hand to promote an end which was not part of his intention. [http://quotes.cat-v.org/economics]

	Smith's promotion and popularization of the concept in his 1776 book [[The Wealth of Nations]], and it propelled the [[British Empire]] to become the greatest power in the history of the world in the 19th century.		Smith's promotion and popularization of the concept in his 1776 book [[The Wealth of Nations]], and it propelled the [[British Empire]] to become the greatest power in the history of the world in the 19th century.

@@ Line 7: / Line 7: @@
 :"[B]y directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an ''invisible hand'' to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. ''By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.'' I have never known much good done by those who affected to trade for the public good." (Emphasis added)
-However, [[game theory]] suggests that this is not always true; in circumstances where individuals are not allowed private property rights each individual acting in their own self-interest does not result in the socially optimal outcome. One such example is the [[problem of the commons|tragedy of the commons]].
+However, the occurrence of [[market failure]]s suggest that this is not always true. In circumstances where property rights are not well-defined, firms or individuals have market power, or there is incomplete information, each [[economic actor]] acting in their own self-interest does not result in the socially optimal outcome. One such example is the [[tragedy of the commons]].
 == The invisible hand in nature ==