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Smith’s invisible hand: controversy is needed

Author

Listed:
  • Flavia Di Mario

    (Independent expert)

  • Andrea Micocci

    (Link University, Rome (Italy))

Abstract

Smith’s metaphor of the invisible hand, commonly attributed to The Wealth of Nations, is described in the Theory of Moral Sentiments. It is a ‘deception’ fed to the lower classes. Private initiative depends upon the presence of privileged classes in a conservative rather than liberal state. Only thus can the ‘invisible hand’ improve the nation’s ‘wealth.’ Hence, the economic mainstream cannot easily claim Adam Smith as their ancestor. Nor can the Marxists associate him to the misdeeds of the mainstream. A Smithian ancestry is more plausible for Neoliberals.

Suggested Citation

  • Flavia Di Mario & Andrea Micocci, 2017. "Smith’s invisible hand: controversy is needed," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 11(1), pages 53-82, November.
    • Handle: RePEc:bus:jphile:v:11:y:2017:i:1:n:3
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Smith; invisible hand; mainstream economics; Marxism; neoliberalism;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)

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