10 Enduring Lessons From Adam Smith
http://www.zerohedge.com/economics/10-enduring-lessons-adam-smith
Adam Smith (1723-1790) is widely considered to be the father of modern economics. There were precursors, such as the School of Salamanca and the French Physiocrats, but Adam Smith's 1776 magnum opus, "An Inquiry Into the Nature and Causes of the Wealth of Nations," was the first comprehensive treatise.
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1. The Invisible Hand Acts
"[B]y directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention .... By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good."
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5. Self-Interest Actually Helps Everyone
Smith was excited about the potential for markets to align incentives. In another famous quip, he reminded us that markets transform private interest into public harmony:
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest."
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Zim: I skipped a LOT. And a lot of it is what I would call 'dry reading' - as in difficult. But, Adam Smith IS one of the greats. Capitalism and free markets has done more to improve the lives of more people than any other system.
Zim.
Mad Poet Strikes Again.
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