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Thursday, June 23, 2011

Do You Believe In God or The Invisible Hand Of The Market?


"Free Market" people are always talking about the invisible hand of the market. They say if there is inequity, the market will take care of it.

This "Invisible Hand" knows all things, and will fix all things. It will allocate resources, and take care of all people.

Adam Smith came up with the term, though people really need to read more of his work in order to understand him better. Here is some more of Smith that many people are unfamiliar with. 


“What happens when ‘the invisible hand’ lets go of the common good? Adam Smith says without a moral framework the market really can’t function properly, and Schumpeter, the Austrian economist, said, ‘When there’s no ethical sensibility, the market ends up devouring every other sector and finally ends up devouring itself.’
"Sympathy arose from an innate desire to identify with the emotions of others. It could lead people to strive to maintain good relations with their fellow human beings and provide the basis both for specific benevolent acts and for the general social order. Thus was formed within the breast the psychological basis for the desire to obey natural laws."--The Theory of Moral Sentiments

Personally, I don't believe in the invisible hand of the market, I believe in God.

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