Here is a description of the way Smith imagined the universe operates: He even went so far as to say that the purpose of government is to defend the rich from the poor. Theft was, to Smith, the worst crime of all, even though a poor man stealing from a rich man may increase overall happiness. For example, property rights must be strong, and there must be widespreadĪdherence to moral norms, such as prohibitions against theft and misrepresentation. He made it clear in his writings that quite considerable structure was required in society before the invisible hand mechanism could work efficiently. Smith was profoundly religious, and saw the "invisible hand" as the mechanism by which a benevolent God administered a universe in which human happiness was maximised. Strategies (see Game Theory and the Cuban Missile Crisis) in Issue 13 of Plus. In the modern context, mathematicians study "invisible hand" processes as part of Game Theory, the branch of mathematics that deals with payoffs and Nowadays, "invisible hand" explanations are invoked to explain all sorts of phenomena, from scientific progress to environmental degradation. Smith is often regarded as the father of economics, and his writings have been enormously influential.
ADAM SMITH INVISIBLE HAND MATH FREE
Of labour and a free market, public interest is advanced.
Each individual strives to become wealthy "intending only his own gain" but to this end he must exchange what he owns or produces with others who sufficiently value what he has to offer in this way, by division In this passage, taken from his 1776 book "An Inquiry into the Nature and Causes of the Wealth of Nations" Adam Smith set out the mechanism by which he felt economic society operated.
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