A long read, but well worth it for the comparison between Adam Smith’s Invisible Hand theory with Charles Darwin’s theories of competition. From the author’s perspective, Darwin more aptly captures modern capitalist markets.
One of many thought provoking passages arguing against the invisible hand:
Because earning extra income enhances an individual worker’s relative position, most workers would be reluctant to move to a safer job at lower pay, even though each might prefer a world in which everyone was required to do so.
I’m still working my way through this one and may well revisit here in Tropewell before I’m done reading.
From The American Interest by Robert Frank
- Darwin Versus “the Invisible Hand”, and a Crappy Commute (anolistollis.wordpress.com)
- Charles Darwin: Fiscal Alchemist? Bring Your Questions for Cornell Economist Robert Frank (freakonomics.com)
- God And The Economists (forbes.com)
- InvisibleHand Makes All Fair in Love and Shopping this Valentine’s Day (prweb.com)
- False Dichotomies in Economics (tuibguy.com)