Sunday, May 17, 2015

Nation and Invisible Hand

In Wealth of Nations, the Economic theme, the transition from Agrarian to Industrial, is subordinated to the Political, i. e. emergent Nationalism. The priority further undermines the credibility of the Invisible Hand thesis, which already seems to violate Empiricist methodology, and, since it can be applied to any outcome, is ultimately trivial. The further problem is that in book IV, chapter 2, Smith ascribes it to a Nation, thereby compromising the premise that it is a natural principle inhering in market activity itself, and, hence, transcending any Political divisions. The purported manifestation of Justice in his system is thus exposed as biased towards domestic interests.

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