Adam Smith - Adam Smith(1723-1790 The Invisible Hand The...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Adam Smith (1723-1790) “The Invisible Hand”
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The “Invisible Hand” The Wealth of Nations (1776). There is a benevolent deity who administers the world in such a way as to maximize human happiness. In order to do this he has created humans with a nature that leads them to act in a certain way. The world as we know it is pretty much perfect, and everyone is about equally happy. In particular, the rich are no happier than the poor. Although this means we should all be happy with our lot in life, our nature (which, remember, was created by God for the purpose of maximizing happiness) leads us to think that we would be happier if we were wealthier. This is a good thing, because it leads us to struggle to become wealthier, thus increasing the sum total of human happiness via the mechanisms of exchange and division of labor.
Background image of page 2
The “Invisible Hand” Economics can be understood as a process involving acting agents There is no explicit agreement between the acting agents
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 11

Adam Smith - Adam Smith(1723-1790 The Invisible Hand The...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online