Friday, August 17, 2018

Invisible Hand and Wealth-Distribution

As has been previously discussed, Smith envisions the Invisible Hand as effecting a distribution of Wealth that benefits everybody in a nation, aka his Trickle-Down clause.   However, it seems to difficult to find any examples of a concrete actualization of that vision in subsequent centuries.  Instead, there have been four main modifications that remain otherwise true to his system.  First, the limitation of the scope of the benefit is attributed to a divine will that rewards and punishes.  Second, the distribution is augmented with charitable giving.  Third, the distribution is augmented with government programs.  Fourth, the distributive function of the Invisible Hand is simply eliminated.  Also, occasionally it is argued that, contrary to appearances, everyone is indeed being adequately served by the Invisible Hand.  Now, contemporary American politics is constituted by these five variations of Smith's vision and their various conflicts, usually with no explicit awareness of their origins in Smith's system.  And, on the periphery of American society, though more central in others, is a more radical response--the repudiation of Smith's other premises, as well.

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