Sunday, November 30, 2014
Invisible Hand and Wealth Redistribution
If there were, as Smith supposes, inherent in Economic activity, a tendency towards equilibrium, its scope would be general, not localized, i. e. not merely specific to Supply-Demand contexts. Rather, it would also correct widespread imbalances, such as disparities in wealth. Accordingly, the redistribution of wealth could be interpreted as a manifestation of such a general tendency. Thus, for example, taxation that funds government benefits to the needy could be appreciated as an expression of Smith's Invisible Hand, not as in conflict with it, contrary to the protests of many contemporary Capitalists.
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