It is a commonplace that the writers of eighteenth century Scotland played a key role in shaping the early practice of social science. This paper examines how this ‘Scottish’ contribution to the Enlightenment generation of social science was shaped by the fascination with unintended consequences. From Adam Smith's invisible hand to Hume's analysis of convention, through Ferguson's sociology, and Millar's discussion of rank, by way of Robertson's View of Progress, the concept of unintended consequences pervades the writing of the period. (...) The paper argues that the idea of unintended order shapes the understanding of the purpose of theoretical social science that emerges from the Scottish Enlightenment. (shrink)

Several stages can be identified in Darwin's effort to formulate natural selection. The first stage corresponded, roughly speaking, to the period up to 1844. It was characterized by Darwin's attempt to base his model of geographic speciation on an individualistic dynamics, with species understood as reproductively isolated populations. Toward the end of this period, Darwin's ignorance of the laws of variations and heredity led him to adopt varieties and species as the units of variations. This had the extremely important effect (...) of stimulating him to consider the process of speciation as involving populations. At the end of this period, Darwin also began to regard adaptation as being exclusively toward places in the economy of nature. Thus he faced the problem of integrating the process of natural selection with the process of speciation. Individual variants were the units that fueled the first process, whereas varieties produced new speices. There was no link between adaptation and speciation, except whatever could be supplied by a quasi-historical, developmental idea of optimizing the amount of life.In the second stage, I contend, Darwin's reading of Milne-Edwards crystallized his previous insights into a coherent whole. Milne-Edwards' comments on the advantage of functional specialization could readily be understood in terms of the advantage accruing to the individual, relative to other members of its species, from occupying a different niche. Milne-Edwards' discussion of the division of labor suggested that organisms which moved into unoccupied niches would enjoy reduced competition, and hence a differential advantage in survival and reproduction; thus they would induce the species to do likewise. Rather than base his explanation on an analogy with the artificial economy, Darwin chose the principle of the optimalization of the amount of life per unit area as the overall explanatory principle. The difficulties connected with integrating different levels of description were therefore circumvented, insofar as the problem of diversity and speciation was concerned. Although natural selection considered individuals as the units of selection, and the units of variations were varieties and species, the dynamics of the process understood in terms of natural selection, competition, division of labor and niches could give a plausible account of how individual advantage could be transferred to the species, and how diversity resulted from this mechanism. The problem of the different levels of descriptions was confined to how the properties of variations in individuals (in particular, the frequency of variations and their transmission) were responsible for the assumed variability characteristic of varieties and species. This problem Darwin never solved.A third stage occurred in 1858 with the amalgamation of the tree-of-life vizualization of the process of speciation. Speciation, geographic distribution, and systematics were all then embedded in a conceptual matrix with vast explanatory powers. (shrink)

Monetary policy is a modern idea of which David Hume is generally considered a precursor. Moreover, thanks to Milton Friedman and Robert Lucas, he is often presented as one of the first and most illustrious endorser of monetarism. This paper argues against this view, and in agreement with Joseph Schumpeter, that Hume's contribution to economics, while not insignificant, cannot claim any real novelties. It offers an interpretation of Hume as a descendant of a pre-modern understanding of money rather than a (...) forerunner of modern monetary ideas, and as a scholar exposing common ideas of his time rather than a prophet of economic theories developed centuries later, and argues that there is little in Hume that resembles today's monetary policy prescriptions. (shrink)

The Clash of Economic Ideas interweaves the economic history of the last hundred years with the history of economic doctrines to understand how contrasting economic ideas have originated and developed over time to take their present forms. It traces the connections running from historical events to debates among economists, and from the ideas of academic writers to major experiments in economic policy. The treatment offers fresh perspectives on laissez faire, socialism and fascism; the Roaring Twenties, business cycle theories and the (...) Great Depression; Institutionalism and the New Deal; the Keynesian Revolution; and war, nationalization and central planning. After 1945, the work explores the postwar revival of invisible-hand ideas; economic development and growth, with special attention to contrasting policies and thought in Germany and India; the gold standard, the interwar gold-exchange standard, the postwar Bretton Woods system and the Great Inflation; public goods and public choice; free trade versus protectionism; and finally fiscal policy and public debt. (shrink)

Self-Interest before Adam Smith inquires into the foundations of economic theory. It is generally assumed that the birth of modern economic science, marked by the publication of The Wealth of Nations in 1776, was the triumph of the 'selfish hypothesis'. Yet, as a neo-Epicurean idea, this hypothesis had been a matter of controversy for over a century and Smith opposed it from a neo-Stoic point of view. But how can the Epicurean principles of orthodox economic theory be reconciled with the (...) Stoic principles of Adam Smith's philosophy? Pierre Force shows how Smith's theory refutes the 'selfish hypothesis' and integrates it at the same time. He also explains how Smith appropriated Rousseau's 'republican' critique of modern commercial society, and makes the case that the autonomy of economic science is an unintended consequence of Smith's 'republican' principles. (shrink)

This book examines the use, principally in economics, of the concept of the invisible hand, centering on Adam Smith. It interprets the concept as ideology, knowledge, and a linguistic phenomenon. It shows how the principal Chicago School interpretation misperceives and distorts what Smith believed on the economic role of government. The essays further show how Smith was silent as to his intended meaning, using the term to set minds at rest; how the claim that the invisible hand is the foundational (...) concept of economics is repudiated by numerous leading economic theorists; that several dozen identities given the invisible hand renders the term ambiguous and inconclusive; that no such thing as an invisible hand exists; and that calling something an invisible hand adds nothing to knowledge. Finally, the essays show that the leading doctrines purporting to claim an invisible hand for the case for capitalism cannot invoke the term but that other nonnormative invisible hand processes are still useful tools. (shrink)