Thank you Julian Wells. I have refrained from
commenting on the search for a visual
representation (film clips, videos, etc.,) of the
invisible hand, a task I would have thought somewhat problematical.
The ensuing suggestions, typical of the helpful
attitude of HES members to fellow scholars ,
grows quite grotesque – I mentioned them without commenting on my Blog.
The suggestions, however, have moved a long way
from Adam Smith’s single use (Book IV of Wealth
Of Nations) of the popular 18th-century metaphor
in respect of the behaviour of some, but not all
British merchants (foreign trade of consumption
and the carrying trade were major sectors in the
British economy at the time) responding to their
individual perceptions of the security of their
capital when sent abroad and when sufficiently
risk-averse, preferring to invest locally,
subject to a profit constraint, which
unintentionally benefited domestic capital formation and employment.
The invisible hand had nothing to do with how
markets operate, divisions of labour, natural and
market prices and such like, analysed by Smith in
Books I and II of Wealth Of Nations, without
mentioning ‘an invisible hand’. That it is
widely believed in academe – and among historians
of the history of economic thought! – that Smith
used the metaphor in these contexts is a modern
invention (at present I am researching exactly
from when the myth began – any suggestions
welcome) and it is now ubiquitous, unfortunately.
So visually presenting to non-economists on the
invisible hand (apart from physically difficult),
by using themes that it had nothing to do with,
is to say the least of questionable merit. Why
not represent markets as markets without mystical
‘invisible hands’, which distort Adam Smith’s intentions (to coin an idea)?
Gavin Kennedy
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