Saturday, December 26, 2015

Nationalism and Invisible Hand

The expression 'wealth of nations' is ambiguous--it could mean 'the wealth of a nation', or 'the combined wealth of an indefinite group of nations'.  Now, most of the substance of Smith's work suggests that the former is its topic.  On the other hand, in some passages, e. g. his objections to protectionist tariffs, he seems to be extending the scope of free enterprise principles to a multiplicity of nations.  In so doing, he exposes the fundamental inconsistency underlying both scenarios--between the concept of Nation, and that of the Invisible Hand.  For, the latter entails no such limitation as the former, from which it follows that Capitalism is neither a national nor even a multi-national system--it is global, with respect to which a Nation is as inessential a constituent unit as is a Precinct.  That contradiction remains only superficially addressed in contemporary political platforms that are both jingoistic and Economically laissez-faire.

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