Friday, January 2, 2015

Invisible Hand and Division of Labor

While the expression "invisible hand" appears sparsely and enigmatically in Smith's works, from the outset of Wealth of Nations, Division of Labor is explicitly advocated as his fundamental principle. Still, perhaps mindful of the consequences of an Atomistic concept of Division, he recognizes in it the danger of a tendency towards social disintegration. However, the only remedy that he offers is a feeble and vague exhortation to goverment intervention. Hence, the Invisible Hand has since emerged as the default binding force counterpoint to Division of Labor in his system.

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