In Invisible Hands, the historians Jonathan Sheehan and Dror Wahrman identify a defining feature of the eighteenth-century Enlightenment: the decline of God as a source of order in favor of a new model of self-organization.” Sheehan and Warhman provide a novel account of how people on the threshold of modernity understood the continuing presence in the world of apparent disorder, randomness, and chance. If God no longer actively guaranteed that order will always prevail, what or whom did? The answer, (...) the authors argue, was a new appreciation for complexity, new understandings of causality, and new functions for the divine hand. At the foundation of this novel way of thinking was the ability to imagine complex systems--be they natural or human--asself-organizing. Invisible Hands maps and explains the intensifying presence of the languages of self-organization throughout the eighteenth century, proliferating as they did with ever greater sophistication across numerous intellectual domains and cultural arenas. For self-organization was less a theory than a field of new insights: insights into the dynamics of chance and randomness, into the relationship between agency and determinism, into the role of God in a world without hands-on providence. (shrink)

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)

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)

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

The men and women in Invisible Hands reveal the human rights abuses occurring behind the scenes of the global economy. These narrators--including phone manufacturers in China, copper miners in Zambia, garment workers in Bangladesh, and farmers around the world--reveal the secret history of the things we buy, including lives and communities devastated by low wages, environmental degradation, and political repression. Sweeping in scope and rich in detail, these stories capture the interconnectivity of all people struggling to support themselves and (...) their families. (shrink)

Economic globalization looks like the "powerless" expansion of communications and markets, but allows the United States to harness the rest of the world to its rhythms and fortify its empire-like power. Action by Europe, China, and East Asia is a vent for hope.

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)

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)

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)

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)

The version of the invisible hand argument in Adam Smith's Theory of Moral Sentiments differs in important respects from the version in The Wealth of Nations. Both are different, in turn, from the version invoked by Milton Friedman in Free to Choose. However, all three have a common structure. Attention to this structure can help sharpen our sense of their essential thrust by highlighting the questions (about the nature of economic motivation, the structure of markets, and conceptions of (...) the public interest) to which answers of certain kinds would have to be available for any of the versions to succeed. (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)

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)

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)

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)

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)

An invisible hand seems to play an important role in science. In this paper I set out the general structure of invisible-hand explanations, counter some objections that have been raised to them, and detail the role that they play in science. The most important issue is the character of the mechanisms that are supposed to bring about invisible-hand effects.

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)

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)

Adam Smith is usually thought to argue that the result of everyone pursuing their own interests will be the maximization of the interests of society. The invisible hand of the free market will transform the individual''s pursuit of gain into the general utility of society. This is the invisible hand argument.Many people, although Smith did not, draw a moral corollary from this argument, and use it to defend the moral acceptability of pursuing one''s own self-interest.

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)

The paper points out that Adam Smith’s famous argument about the “invisible hand” (IH) of markets can be inverted. While the IH argument suggests that the baker and butcher do what is in their costumers’ interests not because they care for their costumers, but out of their own self-interest, one can also defend the converse claim: if one cares for other people and finds a way to satisfy their needs, one can expect that those others will be willing (...) to pay for the satisfaction of their needs. The paper argues that the IH argument has a strong link to the view that the ultimate goal of management should be “profit maximization” and to neo-liberalism’s tenet that in a market economy where companies attempt to maximize profits, a “socially optimal” allocation will be achieved. It is argued, however, that profit maximization is well-defined only within a mathematical model, while real-world decision-making requires one to choose the “relevant set” of options before any assessment of associated profits can be attempted. “Profit maximization” is therefore characterized as a heuristic for managerial decision-making, and it is pointed out that it is by no means essential for management to be successful and sustainable. The inverse IH argument supports natural alternatives, such as Prahalad and Hart’s “bottom-of-the-pyramid” and Yunus’s “social entrepreneurship” approach. Both require the manager to focus on people’s needs first, and regard the “money-making” aspect as secondary. (shrink)

Drawing upon rational choice and investor attention theories, we examine how accusations of corporate bribery and subsequent investigations shape market reactions. Using event study methodology to measure loss in firm value for public firms facing bribery investigations from 1978 to 2010, we found that total market penalties amounted to $60.61 billion. We ran moderated multiple regression analysis to examine further the degree to which the unique characteristics of bribery explain variations in market penalties. Companies committing bribery in less corrupt host (...) countries and with the involvement of compromised executives experienced greater market penalties than did other companies. After partitioning share value losses into components for regulatory penalties, class action settlements, and loss to reputation, we found that reputational penalties account for 81.8¢ of every dollar of share value loss. Omission of reputational penalties in rational choice calculus underestimates bribery costs by 4.5 times. The results suggest that firms should not underestimate the importance of market-imposed reputational penalties by merely considering regulator-imposed fines and sanctions. (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)

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)

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)

Although enterprise risk management (ERM) has many benefits for corporations, there has been virtually no discussion of the extent to which its practice may be said to constitute corporate social responsibility. This article presents a prima facie case for the convergence of the two and examines this case through a consideration of four possible objections or challenges. The conclusion of this article is a tempered optimism that ERM has the significant, but as yet untapped, potential to constitute socially responsible activity, (...) which, if realized, would enable Adam Smith's invisible hand of the marketplace to have an expanded sweep. (shrink)

This chapter contains sections titled: Introduction Scenario 1: The World According to Adam Swift Scenario 2: The World According to Plato Scenario 3: The World According to Adam Smith Conclusion: The Three Fs Notes References.

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)

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)

In his 1979 lecture series now translated as The Birth of Biopolitics, Michel Foucault suggests that there is an important relationship between neoliberalism and the cluster of phenomena he had previously named “biopower.” The relationship between these two apparently very different forms of governmentality is not obvious, however, and Foucault does not explicate it. The question has become a pressing one for feminists because it underlies a set of issues surrounding the emerging field of “reprogenetics.” Feminists have been highly critical (...) of invasive reproductive technologies for decades, viewing them as demeaning to and dangerous for women's bodies and as staunchly traditional in their reinforcement of gender roles and of maternity as female desire and destiny. Reprogeneticists accuse feminists of hypocrisy in seeking to curtail the widest technically possible range of “procreative choice.” This essay traces some ways in which reprogenetics may be interpreted as a biopolitical formation as well as a neoliberal formation and suggests how the two seemingly antithetical types of phenomena might actually be overlapping and mutually reinforcing—perhaps opening the way for a more effective feminist critique. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:110 DAVID HUME'S INVISIBLE HAND IN THE WEALTH OF NATIONS THE PUBLIC CHOICE OF MORAL INFORMATION Introduction The thesis I shall defend is that there are systematic aspects of Adam Smith's economics which make little sense when read in isolation from a literature in which David Hume provides the signal contributions. Consequently, parts of Hume's own work are stripped of meaning, isolated as they are from later (...) developments. The puzzles about Smith's analysis which I find illuminated by Hume's are the following: 1. Why does Smith both defend the importance of economic growth for the material of well-being of the working class and claim that property originates as spoil, impoverishing the working class? After all, in the classical system the existence of property is one requisite for economic growth. 2. Why does Smith exalt the assumption of self-interested behavior in private activity but claim that irrationality dominates the political process? 3. Why does Smith deny the importance of benevolence in Wealth of Nations and insist on the importance of morality Sentiment morality in Theory of Moral its?3 The three questions have a common feature: they are related to the question of how public goods are provided. The particular public good in question is the institution of private property. As with all true I am obligated to the Center for Study of Public Choice for generous support of my research. Suzanne Levy gets the credit for the extent to which this approaches English. I have benefited from acute comments from Charles Rowley and Charles Griswold. The errors and obscurities which remain are solely my responsibility. Ill public goods, society considered as a whole benefits from having such an institution, but each individual considered separately can gain by anti-social behavior.4 Public goods provide a considerable difficulty for any social institution; neither competition in the market nor government requests that individuals reveal how much they wish to be taxed are certain to be efficient. There are aspects of the classical economic analysis which stress the importance of moral information as a partial solution to the public goods problem. By "moral information" I only require that the theory is employed as a guide and that if an individual acts contrary to the theory, this choice is not cited as "falsifying" the theory. Rather, something is said to be "wrong" or "wicked" about the choice.6 Much of modern economic analysis assumes that individuals have perfect information; this postulate rules out any significant role for moral information in the provision of the public goods. To avoid assuming away such a role for morality, we will drop the perfect information assumption and then examine if we can make sense of the classics' attack on the public goods problem. Of course, the specification that individuals see their own interests very poorly is consistent with Smith's general approach. The technique employed below is to look at the issue which Hume and Smith addressed as a problem in modern economics. The key difficulty is to determine under what conditions moral information could guide individuals with very imperfect perceptions to maximize their utility. In particular, suppose we find that moral guidance tells an individual how efficiently to produce. Is this morality self-enforcing or are resources required to persuade people to act in accord with these teachings? If resources are required, we will not pay much attention to just how this persuasion 112 is provided, e.g., whether we tell people that theft is "evil" or whether we hang a few thieves. General production theory tells us we probably will do both, but this is a separate issue. The argument to be advanced is that moral information has self-enforcement properties in private activities but these properties are missing in public activities. In this account, then, real resources will be required for implementing the morality. This consideration in turn raises an interesting issue. If the government expends these resources, what reason is there to believe that they will be provided to serve the public interest and not the interest of the government? Is it possible that the government can prosper by keeping people ignorant or by giving them advice... (shrink)