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Pat Gunning said: 
 
> The question arises of what Smith means when he says "promotes the interest  
> of society." The answer to that, it seems to me comes from his butcher,  
> baker, and brewer passage. He is writing about what neoclassical economists  
> meant when the referred to "the interests of individuals acting in the role  
> of the consumer." The fact that he modifies this phrase with the word  
> "frequently" shows, it seems to me, that he was mixing model building with  
> realistic practical conclusions. His meaning probably goes something like  
> this: "if the behavior of the butcher is not fraudulent, if the consumer  
> does not err in his own eyes, if the production of the meat does not cause  
> a negative externality, and if the butcher does not charge a monopoly  
> price; consumers will gain from the actions of business people who employ  
> their capital, including the butchers, bakers and brewers; and no one else  
> will lose." 
>  
 
Sounds like what you're describing would today be called economic efficiency, the
maximization of net social benefits, say. One problem, though, in the quote where Smith is
detailing the actions which give rise to the invisible hand, he states "By preferring the
support of domestic to that of foreign industry, he intends only his own security". Is
this a lapse in judgment on the part of Smith or does he perceive the invisible hand as
being something less than free of invisible bruises and blemishes?
 
Chas Anderson 
 
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