Monday, February 20, 2017

Equality, Invisible Hand, Trickle-Down

The Benthamist concept of the wealth of a nation as the sum of the individual wealths of its citizens does not distinguish between the various distributions that can constitute one and the same sum, and, so, entails no privileging of Egalitarianism.  However, Smith does favor the latter, though his attention to it is not in Wealth of Nations, but in Theory of Moral Sentiments.  There he proposes that, under the guidance of "an invisible hand", economic equalization can be achieved via the domestic expenditures, even selfish ones, of the wealthy, a process that has come to be known as "trickle-down".  So, in contrast with many contemporary Capitalists, Smith does express concern over Inequality, and, as a solution, he might insist that the wealthy cease hoarding, secreting, or globalizing their assets, though such a remedy conflicts with the Egoism that he promotes.  In any case, compelling evidence, and not mere repetition of slogans such as "A rising tide lifts all boats", of the efficacy of the trickle-down process as an equalizer, has been lacking.

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