The Treatment of Smith's Invisible Hand

Autor/in	Wight, Jonathan B.
Titel	The Treatment of Smith's Invisible Hand
Quelle	In: Journal of Economic Education, 38 (2007) 3, S.341-358 (18 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
Schlagwörter	Stellungnahme; Economics Education; Undergraduate Study; Free Enterprise System; Social Systems; European History; Figurative Language; Efficiency; Economic Progress + Suchen Sie Ihr Suchwort? Wirtschaftskunde; Grundstudium; Freie Wirtschaft; Social system; Soziales System; Effectiveness; Effektivität; Wirkungsgrad; Economic growth; Wirtschaftswachstum
Abstract	Adam Smith used the metaphor of an invisible hand to represent the instincts of human nature that direct behavior. Moderated by self-control and guided by proper institutional incentives, actions grounded in instincts can be shown to generate a beneficial social order even if not intended. Smith's concept, however, has been diluted and distorted over time through extension and misuse. Common misperceptions are that Smith unconditionally endorsed "laissez-faire" markets, selfish individualism, and Pareto efficiency. The author draws upon recent literature to clarify Smith's meaning and to discuss ways of improving its classroom presentation. The author argues that the invisible hand operates within a variety of institutional settings and that a number of arrangements are compatible with economic progress. (Contains 9 notes.) (Author).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10