Introduction -- Unintended consequences -- The origin of money -- Segregation -- The invisible hand -- The origin of money reconsidered -- Models and representation -- Game theory and conventions -- Conclusion.

In this paper I will discuss the idea of the invisible hand in the connection of its recent use in the philosophy of science. It has been invoked by some philosophers of science with a naturalistic bent as a part of their account of science. Some have made explicit references to the idea (Hull, 1988a) and others have only presupposed it (Giere, 1988; Goldman, 1991; Kitcher, 1993). I will argue that there are some problematic features in the way (...) the idea of the invisible hand isused inthese accounts. I will first discuss some general properties of the invisible hand explanations and then present some motives for its use in the theory of science. Then I will show how one particular philosopher of science, David Hull, uses the idea. I will use Hull's account as a practising target and offer some comments and criticism in order to promote more disciplined use of this model of explanation in science studies. (shrink)

One of the central tenets of mainstream economics is Adam Smith's proposition that, given certain conditions, self-interested behavior by individuals leads them to the social good, almost as if orchestrated by an invisible hand. This deep insight has, over the past two centuries, been taken out of context, contorted, and used as the cornerstone of free-market orthodoxy. In Beyond the Invisible Hand, Kaushik Basu argues that mainstream economics and its conservative popularizers have misrepresented Smith's insight and (...) hampered our understanding of how economies function, why some economies fail and some succeed, and what the nature and role of state intervention might be. Comparing this view of the invisible hand with the vision described by Kafka--in which individuals pursuing their atomistic interests, devoid of moral compunction, end up creating a world that is mean and miserable--Basu argues for collective action and the need to shift our focus from the efficient society to one that is also fair. Using analytic tools from mainstream economics, the book challenges some of the precepts and propositions of mainstream economics. It maintains that, by ignoring the role of culture and custom, traditional economics promotes the view that the current system is the only viable one, thereby serving the interests of those who do well by this system. Beyond the Invisible Hand challenges readers to fundamentally rethink the assumptions underlying modern economic thought and proves that a more equitable society is both possible and sustainable, and hence worth striving for. By scrutinizing Adam Smith's theory, this impassioned critique of contemporary mainstream economics debunks traditional beliefs regarding best economic practices, self-interest, and the social good. (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 (...) class='Hi'>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)

The expression “the invisible hand of the market” (from the Adam Smith’s “Wealth of Nations”) sometimes acquires in modern ecomomical and everyday journalism the most unexpected overtones, like “why “the invisible hand of the market» totally disregard writer”? In the area of the scientific economic thinking “the «invisible hand” is interpreted as the objective market mechanism which coordinates the decisions of buyers and sellers. The attempts to analyze the epistemological status of “the invisible (...) hand” are quite rare, especially in the modality of the formation of the Economics as a science. Meanwhile, as it is shown in the article, there is reason to see here the first fundamental step to the origination of the scientific research program of the economic science in the strict sense. The author assumes that phenomena like “the invisible hand of the market” is comparable to what Thomas Kuhn designates as “the metaphysical parts of paradigms”, i. e. basic ontological models, which define peculiar scientific vision of the reality under research. The main difficulty for the scientific rationality in the attempts of generating scientific knowledge about society, was to represent the corresponding processes of human activity in the form of objective reality, which is required by the basic ideological attitude of the science as such. (shrink)

Building on work by Popper, Schweber, Nozick, Sober, and others in a still-growing literature, I explore here the conceptual kinship between Adam Smith''s ''invisible hand'' and Darwinian natural selection. I review the historical ties, and examine Ullman -Margalit''s ''constraints'' on invisible-hand accounts, which I later re-apply to natural selection, bringing home the close relationship. These theories share a ''parent'' principle, itself neither biological no politico-economic, that collective order and well-being can emerge parsimoniously from the dispersed action (...) of individuals. The invisible hand operates on ''memes'' the way natural selection operates on genes. Like Darwin''s concept, it brings together traditional opposites, ''nature'' and ''selection,'' forming a saltation-mitigating transition between biological instinct and full-blown conscious design. Herschel''s criterion of confirmation, which Darwin long strove to satisfy, is itself an invisible hand-like meme – a ''Midas effect'' revealing and rewarding the fittest theories, Darwin''s and Smith''s emphatically among them. (shrink)

writings, however, reveals a profoundly medieval outlook. Smith is preoccupied with the need to preserve order in society. His scientific methodology emphasises reconciliation with the world we live in rather than investigation of it. He invokes a version of natural law in which the universe is a harmonious machine administered by a providential deity. Nobody is uncared for and, in real happiness, we are all substantially equal. No action is without its appropriate reward – in this life or the next. (...) The social desirability of individual self-seeking activity is ensured by the ‘invisible hand’, that is, the hand of a god who has moulded us so to behave, that the quantity of happiness in the world is always maximised. (shrink)

Over the past decade, the number of clinical trials registered with the Food and Drug Administration has increased dramatically. The business of clinical research has become more diverse, involving academic institutions, clinician-researchers in community settings, pharmaceutical companies, and contract research organizations. This growth has been accompanied by increasing concerns about the ethical conduct of research. Much of this concern has been directed to procedural issues including institutional review board review, data monitoring, and informed consent forms. However, the protection of human (...) subjects cannot be achieved by relying solely on procedural safeguards. There are more nuanced issues related to recruitment and retention of subjects, and to the process of informed consent, that are generated during the interaction between study staff and subjects. It is only through an examination of these relationships that one can more fully define and understand the challenges of protecting subjects in research. (shrink)

Friedrich Hayek’s account of “spontaneous order” has generated increasing interest in recent decades. His argument for the superiority of the market in distributing knowledge without the need for central oversight has appealed to progressive democratic theorists, who are wary of the hubris of state planning and attracted to possibilities for self-organization, and to Foucaultians, who have long counseled political theory to cut off the King’s head. A spontaneous social order, organized by an invisible hand, would appear to dispense (...) with arbitrary power and foster creativity and individual liberty. This article challenges this view by highlighting the centrality of submission to Hayek’s account of spontaneous order. It shows that Hayek struggles to obscure the providentialism underpinning the account of social order he derives from Adam Ferguson and the Scottish Enlightenment. Nonetheless, his own account of spontaneous order relies on faith in the workings of the market, and submission to unintelligible market forces. (shrink)

The argument of the "Invisible Hand" is that the system of free enterprise benefits society in general even though it is not the aim of any particular economic agent to do that. This article proposes an analysis of why this is so. The key is that the morality of the market forbids only force and fraud; it does not require people to do good to others. Nevertheless, when all transactions are voluntary to both parties, that is exactly what (...) we can expect to happen. This is both because the sum of the benefits of innumerable transactions, which are beneficial to both parties, is very great, but also and especially because of Positive Externalities. People use the particular products and services they get in market exchanges in ways that benefit others in ways not at all foreseen by the agents to those transactions at the time. These externalities range from the benefits of invention and ingenuity to the exercise of charity and philanthropy, all of which flourish in developed capitalist societies. (shrink)

Over the past decade, the number of clinical trials registered with the Food and Drug Administration has increased dramatically. The business of clinical research has become more diverse, involving academic institutions, clinician-researchers in community settings, pharmaceutical companies, and contract research organizations. This growth has been accompanied by increasing concerns about the ethical conduct of research. Much of this concern has been directed to procedural issues including institutional review board review, data monitoring, and informed consent forms. However, the protection of human (...) subjects cannot be achieved by relying solely on procedural safeguards. There are more nuanced issues related to recruitment and retention of subjects, and to the process of informed consent, that are generated during the interaction between study staff and subjects. It is only through an examination of these relationships that one can more fully define and understand the challenges of protecting subjects in research. (shrink)

Mainstream climate economics takes global warming seriously, but perplexingly concludes that the optimal economic policy is to almost do nothing about it. This conclusion can be traced to just a few “normative” assumptions, over which there exists fundamental disagreement amongst economists. This paper explores two axes of this disagreement. The first axis measures faith in the invisible hand to adjust the natural thermostat. The second axis expresses differences in views on the efficiency and equity implications of climate action. (...) The two axes combined lead to a classification of conflicting approaches in climate economics. The variety of approaches does not imply a post-modern “anything goes”, as the contradictions between climate and capitalism cannot be wished away. (shrink)

Reviving the Invisible Hand is an uncompromising call for a global return to a classical liberal economic order, free of interference from governments and international organizations. Arguing for a revival of the invisible hand of free international trade and global capital, eminent economist Deepak Lal vigorously defends the view that statist attempts to ameliorate the impact of markets threaten global economic progress and stability. And in an unusual move, he not only defends globalization economically, but also (...) answers the cultural and moral objections of antiglobalizers. Taking a broad cross-cultural and interdisciplinary approach, Lal argues that there are two groups opposed to globalization: cultural nationalists who oppose not capitalism but Westernization, and "new dirigistes" who oppose not Westernization but capitalism. In response, Lal contends that capitalism doesn't have to lead to Westernization, as the examples of Japan, China, and India show, and that "new dirigiste" complaints have more to do with the demoralization of their societies than with the capitalist instruments of prosperity. Lal bases his case on a historical account of the rise of capitalism and globalization in the first two liberal international economic orders: the nineteenth-century British, and the post-World War II American. Arguing that the "new dirigisme" is the thin edge of a wedge that could return the world to excessive economic intervention by states and international organizations, Lal does not shrink from controversial stands such as advocating the abolishment of these organizations and defending the existence of child labor in the Third World. (shrink)

Video games aren't merely casual entertainment: they are the heart of one of the fastest-growing media industries in the world, and a cultural phenomenon in their own right. Gaming has evolved from a niche pastime into a global business that rivals film and television, creating, in the process, new art forms and social arenas and have become the subject of endless public debate. This book shows that games also provide a unique space in which to study economic behavior. Games, more (...) than any other form of media, demonstrate the power and creative potential of human choice - an idea that's also the foundation of economic thinking. Whether it's developing trade relations, or the use of money, or even complex legal institutions, virtual worlds provide a captivating and entertaining arena for studying economic behavior in its most dynamic forms. The overarching theme of the volume is the economic order that governs virtual worlds, and the many ways individuals work together, often without knowing it, to govern their social relations in digital space. (shrink)

Adam Smith's metaphor of the "invisible hand" and its analogue in classical physics are investigated in detail. Smith's analogue was the mechanics of the solar system. What makes the analogy fail are not the idealisations in the caricature-like model of the rational economic man . The main problem rather is that the metaphor does not employ the correct analogue, which belongs to thermodynamics and statistics. In the simplest macro-economic model, the business cycle has the same formal structure as (...) the heat flow between two heat reservoirs and a business cycle of growing efficiency works like a refrigerator: it pumps money from the poor to the rich. More complicated models do not give a friendlier image. Due to technological push, an economic system behaves like a thermodynamic system far from the equilibrium, showing chaotic behaviour and developing into unpredictable states. (shrink)

This essay argues that Merleau-Ponty’s phenomenological description of gestural motility in his Phenomenology of Perception contributes to, and in a material way carries forward, not only (1) the account of alienation that Marx proposes in his writings on the condition of manual labour, but also (2) the reflections, at once critical and utopian, that Marx set out in his 1844 Economic and Philosophical Manuscripts , evoking in terms of praxis the realization and fulfillment of our sensuous nature as embodied beings. (...) It is also argued, here, that Merleau-Ponty’s critique of the philosophical accounts of gesture formulated by intellectualism and naturalism shows that, in spite of their differences, they are both ideologically constituted systems of thought that uncritically reflect, and consequently reproduce, the alienations and reifications to which Marx calls attention in his critique of capitalism. Thus, as long as the invisible hand of capital rules, the hands of the worker that exploitation has damaged - and indeed the fully realized hands of which Marx in his early years dreamed - will remain invisible. Key Words: alienated labour • Marx • Merleau-Ponty • motor pathologies • phenomenology • reification. (shrink)

In his embryological treatise De plastica seminis facultate , Jacob Schegk , professor of philosophy and medicine at the University of Tübingen, developed, through a unique interpretation of the Aristotelian embryology, a theory of the "plastic faculty" , whose origin lay in the Galenic idea of the formative power. The present study analyses the precise nature of Schegk's theory, by setting it in its historical and intellectual context. It will also discuss the hitherto unappreciated Neoplatonic dimension of Schegk's notion of (...) the soul's vehicle. (shrink)

The practice of giving the wealthy perpetual control of their assets is re-emerging in an era of great wealth inequality, long after it had been banned in common law countries. The philosophical justification for such control rests on the claim that there are posthumous rights to wealth, and that such rights do not extend in problematic way to other goods, such as political suffrage. On the basis of such a claim, we give people freedom of testation, and deem them vulnerable (...) to posthumous harm. I present a short history of legally sanctioned posthumous control of property in common law, and I argue that its philosophical justification is untenable. No principled case for posthumous rights to wealth survives scrutiny, and the large and powerful institutions that enforce such rights are morally illegitimate. (shrink)

Children posit unobserved causes when events appear to occur spontaneously. What about when events appear to occur probabilistically? Here toddlers saw arbitrary causal relationships in a fixed, alternating order. The relationships were then changed in one of two ways. In the Deterministic condition, the event order changed ; in the Probabilistic condition, the causal relationships changed. As intended, toddlers looked equally long at both changes. We then introduced a previously unseen candidate cause. Toddlers looked longer at the appearance of a (...) hand and novel agent in the Deterministic than the Probabilistic conditions, but looked equally long at novel non-agents, suggesting that by 2 years of age, toddlers connect probabilistic events with unobserved agents. (shrink)

The connection between Adam Smith and Alasdair MacIntyre is not evident at first glance. In fact, those who know MacIntyre’s work might bristle at the association. MacIntyre is inherently anticapitalist. He believes that moral people ought to reject the modern state and large-scale corporations.1 He also rejects what he terms the enlightenment project, claiming not only that it failed but that it was doomed to do so.2 Furthermore, MacIntyre’s perspectivalism seems to run counter to any “impartial spectator” theory such as (...) Smith ’s; tradition-bound rationality necessarily assumes partiality.3 In short, MacIntyre regards himself as an opponent of the liberal tradition, that intellectual lineage which is most closely associated with Smith, and, although he rejects association with communitarianism, he holds a similar place in contemporary philosophy. He is liberalism’s critic, not its reformer. But ethics makes strange bedfellows. MacIntyre’s theory of rationality, I contend, provides a useful and important complement to Smith ’s moral psychology. It allows for the intermingling of emotion and reason that is so important for Smith ’s work.4 It creates a structure for bridging Smith ’s individuals and the communities of which they are a part. In essence, I argue, MacIntyre’s work allows us to better understand Smith ’s jump from deliberation on the individual level to the development of cultural standards and norms. I conclude that Smith ’s emphasis on the individual results in an incomplete theory of communal rationality, and that MacIntyre’s emphasis on tradition leaves out a foundation of individual agency. The two theories, however complement each other well. As a bit of preparation, it is worth mentioning that both thinkers, and Smith, in particular, are often portrayed inaccurately. Smith is not the self-interest focused libertarian that he is made out to be. He is, instead a sophisticated moral theorist whose first book, The Theory of Moral Sentiments was celebrated and influential in its time. (shrink)

How does so much gender inequality endure in an era when many laws and policies endorse principles of gender equality? This essay examines this dilemma by considering Susan Moller Okin's criticism of “false gender neutrality,” research on implicit bias, and the shifting relation of gender bias to American law. I argue that these are crucial elements of the modern cycle of gender inequality, enabling it to operate through a perverse “invisible-hand” mechanism. This framework helps convey how underlying gender (...) bias influences individual behaviors that generate, legitimate, and mask broad patterns of inequality. Contemporary legal conflicts reflect many of these dynamics, which appear in controversies over gender-based violence, gender discrimination in pay and promotion, and women's reproductive health care benefits. This analysis advances our understanding of how the contemporary cycle of gender inequality operates, the complex links between individual behavior and structural bias, and the difficulty of pursuing gender justice through prevailing frameworks of law and liberalism. It also underscores the continued importance of feminists' collective work to address “invisible” as well as visible biases. (shrink)

We make the case that scientifically accurate and politically feasible responses to the climate crisis require a complex understanding of human cultural practices of niche construction that moves beyond the adaptive significance of culture. We develop this thesis in two related ways. First, we argue that cumulative cultural practices of niche construction can generate stable equilibria and runaway selection processes that result in long-term existential risks within and across cultural groups. We dub this the back of the invisible (...) class='Hi'>hand. Second, we argue that the ability of cultural groups to innovate technological solutions to environmental problems is highly constrained in ways that are exacerbated by sustained intergroup conflict, inequality and by inherently unpredictable cascades in climate change and human migration patterns. After developing these theoretical points about human cultural practices of niche construction in detail, we conclude our discussion with some tentative practical suggestions about the way that cultural evolutionary history can more fruitfully be used in efforts to remit the climate crisis and contribute to sustainable practices of human climate change adaptation. (shrink)

Adam Smith rejected Mandeville's invisible-hand doctrine of 'private vices, publick benefits'. In The Theory of Moral Sentiments his model of the 'impartial spectator' is driven not by sympathy for other people, but by their approbation. The innate capacity for sympathy makes approbation credible. Approbation needs to be authenticated, and in Smith's model authentication relies on innate virtue, which is not realistic. An alternative model of 'regard' makes use of signalling and is more pragmatic. Modern versions of the (...) class='Hi'>invisible hand in rational choice theory and neo- liberalism are shown to be radical departures from the ethical legacy of Enlightenment and utilitarian economics, and are not consistent with Adam Smith's own position. (shrink)

This book examines the effects of the market mechanism on economies and societies. It argues that perfect competition has a tendency to promote adulteration of products and a general deterioration in quality. It also contends that it is very difficult for competitive firms to behave in socially desirable ways - being kind to the environment, contributing to worthy social programmes, handling redundancy humanely. The book goes on to propose ways in which these flaws might be remedied without subverting the market (...) mechanism. (shrink)

This book contributes to the 'new view' reading of Adam Smith, providing a historically and contextually rich interpretation of Smith's thought. Smith built a moral philosophy on the foundations of a natural theology of human sociality. Examination of his life, relationship with David Hume, and use of divine names shows that he retained a progressive form of Christian theism. The book interrogates the metaphor of the 'invisible hand' and highlights the importance of the religious dimension of Adam Smith's (...) thought for his moral philosophy, his jurisprudence and his economics. It reflects on the contemporary relevance of a theological reading of Smith and lays the ground for further inquiry between economic and religious perspectives. (shrink)

Markets, just like states, are systems of governance. Their justification must therefore meet similar standards of moral scrutiny, despite the fact that their authority structure is impersonal. In order to argue for the role of markets as systems of governance that raise similar justificatory burdens, this book provides a philosophical account of market institutions. According to this view, shared social institutions define a framework for how members of a political community think and act toward one another, consistent with citizens respecting (...) themselves and one another as free persons, each entitled to guide their activities in light of their own judgments. The market is one of these shared institutions, so its rules must also be consistent with mutual respect as free persons. This perspective represents a fundamentally different way of thinking about economic life, which rejects both the view of economic actors as disconnected individuals in a state of nature and the view of economic actors as mere preference orderings that are inputs to a giant social welfare function. The book formulates a deeper framework for thinking about economic life, which can displace the familiar ideas that underpin contemporary neoliberalism and finance capitalism. In so doing, the book works out the implications of the idea that the burdens of equal citizenship extend to economic life, such that appropriately regulated markets and workplaces elicit and realize a system in which people respect one another as free. The book concludes with a defense of economic democracy, elements of which can be found under German codetermination. (shrink)

Hayek's social theory presupposes that rules are unintended consequences of individual actions. This essay explicates one kind of Hayekian explanation of that claim. After noting the kinds of rules that Hayek believes are subject to such a theory, the essay distinguishes three functional explanations advocated by Hayek. He combines one of these functional explanations with an invisible hand explanation. A schema suitable for constructing invisible hand-functional evolutionary theories is employed to outline this combination.

The neglect of issues related to the economic status of minorities and women in introductory economics textbooks widely used in the United States is a problem rooted in the most fundamental theoretical propositions of mainstream economics. Despite the fact that the claims of both mainstream methodology and general equilibrium theory have been seriously questioned in recent years, introductory economics textbooks fail to incorporate into the principles curriculum those critical findings which would allow analysis of the economic problems of women and (...) minorities in the United States. This article compares mainstream and radical textbooks' treatments of race and gender issues to show how the radical approach to these economic questions overcomes many of the deficiencies of the mainstream approach. (shrink)

In this essay we take creationist biochemist Michael Behe to task for failing to make an evidentially grounded case for the supernatural intelligent design of biochemical systems. In our earlier work on Behe we showed that there were dimensions to biochemical complexity---redundant complexity---that he appeared to have ignored. Behe has recently replied to that work. We show here that his latest arguments contain fundamental flaws.

David Hull accounts for the success of science in terms of an invisible hand mechanism, arguing that it is difficult to reconcile scientists' self-interestedness or their desire for recognition with traditional philosophical explanations for the success of science. I argue that we have less reason to invoke an invisible hand mechanism to explain the success of science than Hull implies, and that many of the practices and institutions constitutive of science are intentionally designed by scientists with (...) an eye to realizing the very goals that Hull believes need to be explained by reference to an invisible hand mechanism. Thus, I reduce the scope of Hull's invisible hand explanation and supplement it by appealing to a hidden hand explanation. (shrink)