The Invisible Hand
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17-02-2011, 11:14 PM
The Invisible Hand
The invisible hand of the marketplace.

A benign invisible force that guides our lives for the better and that is followed blindly?

Peace and Love and Empathy,

Matt
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17-02-2011, 11:25 PM
RE: The Invisible Hand
(17-02-2011 11:14 PM)Ghost Wrote:  The invisible hand of the marketplace.

A benign invisible force that guides our lives for the better and that is followed blindly?

Peace and Love and Empathy,

Matt
I'm not familiar enough with economics to say. What do you think?

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Something something something complete
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18-02-2011, 08:18 AM
RE: The Invisible Hand
(17-02-2011 11:14 PM)Ghost Wrote:  The invisible hand of the marketplace.

A benign invisible force that guides our lives for the better and that is followed blindly?

We don't "follow" the invisible hand. In fact, "invisible hand" is about as big a misnomer as you can possibly get.

It's not a force that regulates trade. It's the natural consequence of a competitive free market system.

"Owl," said Rabbit shortly, "you and I have brains. The others have fluff. If there is any thinking to be done in this Forest - and when I say thinking I mean thinking - you and I must do it."
- A. A. Milne, The House at Pooh Corner
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18-02-2011, 10:35 AM
RE: The Invisible Hand
It's just a metaphor for a self regulating market.
Sadly , some people(not referring to Ghost) misinterpret it and that's how conspiracy theories are born.

Atheism is a religion like OFF is a TV channel !!!

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18-02-2011, 10:49 AM
RE: The Invisible Hand
In invisible hand we trust?

"Don't meddle. The Invisible Hand will make it better for it is all knowing."

Peace and Love and Empathy,

Matt
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18-02-2011, 11:29 AM
 
RE: The Invisible Hand
Someone is taking an economics course. Wink
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18-02-2011, 11:40 AM
RE: The Invisible Hand
The invisible hand is not always a metaphor and it's not always a crazy conspiracy theory. For example, when the gas companies "conspire" to artificially maintain an inflated "cost" for gasoline, that's the invisible hand. In some cases, they don't even have to exchange glances to do it. It's simply understood that unrest in Egypt (for example) represents a viable excuse to jack prices, so they all do it at the same time, and then blame the market.
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18-02-2011, 11:03 PM
RE: The Invisible Hand
They are The Borg, we are being assimulated. Tongue

When I find myself in times of trouble, Richard Dawkins comes to me, speaking words of reason, now I see, now I see.
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19-02-2011, 11:46 AM
RE: The Invisible Hand
(18-02-2011 11:40 AM)gamutman Wrote:  The invisible hand is not always a metaphor and it's not always a crazy conspiracy theory. For example, when the gas companies "conspire" to artificially maintain an inflated "cost" for gasoline, that's the invisible hand. In some cases, they don't even have to exchange glances to do it. It's simply understood that unrest in Egypt (for example) represents a viable excuse to jack prices, so they all do it at the same time, and then blame the market.

But that's not what the invisible hand is. What you're describing is an anti-competitive conspiracy. I'm not saying that does not happen - I absolutely think it does - but that is not what Adam Smith was referring to.

I'm a big fan of the late, great Adam Smith and I believe, generally, in his theories. However, I recognize that no theory can exist in its purest form in reality so compromises have to be made. The debate is always going to be in where those compromises are. I think Smith would be appalled by the economic models we have in place today. But, I think what would upset him the most is our modern form of corporate capitalism where risk and reward are totally divorced.

Finally, I find that Adam Smith and "The Wealth of Nations" are analogous to Jesus Christ and the Bible: the number of people who worship the men and claim to believe in the book far out number the people who have actually read the damn thing and know what it actually says. As with the bible, I think a lot of so-called capitalists would be stunned if they ever sat down and actually read Smith's texts (and the first thing that would stun them is how difficult and painful he is to read).

Shackle their minds when they're bent on the cross
When ignorance reigns, life is lost
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19-02-2011, 12:39 PM
RE: The Invisible Hand
Didn’t "the invisible hand" cause the world economic crisis of 2008?

Observer

Agnostic atheist
Secular humanist
Emotional rationalist
Disclaimer: Don’t mix the personal opinion above with the absolute and objective truth. Remember to think for yourself. Thank you.
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