Abstract
The ‘invisible hand’ means a variety of things to modern writers, who use the phrase loosely to imply the market, the price system, efficiency, laissez-faire, greed is good, and so on (Samuels et al., 2011; Medema, 2009; Rothschild, 1994). In some circles the invisible hand is referred to with reverence and in others with mockery. What Smith wrote, and meant, is quite different from current constructions. At first reading, Smith’s three references to an invisible hand appear to be unconnected turns of phrase. One can find ample reason for agreeing with Kennedy (2009) that in its current use the expression has been blown out of all proportion to its author’s original intent and any reasonable extrapolation thereof. On the other end of the spectrum are authors like Klein and Lucas (2011), who argue that the invisible hand is the central concept of Smith’s work and that Smith consciously placed it at the exact physical midpoint of both his books as a rhetorical pièce de résistance, the most nourishing part of the meal. This proposition is implausible on many levels. If there were such an intended dialectical message it is curious that it remained hidden from all of Smith’s friends and closest colleagues. It is possible to argue a middle ground, however, as this chapter does, that the concept behind the invisible hand is central to Smith’s work, but that the phrase itself is only one of many spread out through his work, and that the placement, as well as the exact phraseology, are non-issues.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
Bibliography
Ashraf, N., Camerer, C. F. and Loewenstein, G. (2005). ‘Adam Smith, Behavioral Economist’, Journal of Economic Perspectives, 19(3): 131–45.
Bentham, J. (1907 [1780]). An Introduction to the Principles of Morals and Legislation (Oxford: Clarendon Press), Library of Economics and Liberty. Retrieved January 22, 2014 from http://www.econlib.org/library/Bentham/bnthPML3.html.
Cosmides, L. and J. Tooby (1994). ‘Better than Rational: Evolutionary Psychology and the Invisible Hand’, American Economic Review 84: 327–32.
Evensky, J. (1993). ‘Ethics and the Invisible Hand’, Journal of Economic Perspectives 7(2): 197–205.
Fiori, S. (2012). ‘Adam Smith on Method: Newtonianism, History, Institutions, and the “Invisible Hand”’, Journal of the History of Economic Thought 34(3): 411–35.
Grampp, W. D. (2000). ‘What Did Smith Mean by the Invisible Hand?’, Journal of Political Economy 108(3): 441–64.
Kennedy, G. (2009) ‘Adam Smith and the Invisible Hand: From Metaphor to Myth’, Economic Journal Watch 6(2): 239–63.
Khalil, E. L. (2000). ‘Beyond Natural Selection and Divine Intervention: The Lamarckian Implication of Adam Smith’s Invisible Hand’, Journal of Evolutionary Economics 10(4): 373–93.
Klein, D. B. and Lucas, B. (2011). ‘In a Word or Two, Placed in the Middle: The Invisible Hand in Smith’s Tomes’, Economic Affairs 31(1): 43–52.
Macfie, A. (1967). The Individual in Society: Papers on Adam Smith (London: George Allen & Unwin).
Makowski, L. and Ostroy, J. M. (2004). ‘The Invisible Hand’, Duke University Workshop Papers (October).
Medema, S. G. (2009). The Hesitant Hand: Taming Self-Interest in the History of Economic Ideas (Princeton: Princeton University Press).
Mitra-Kahn, B. (2012). ‘How God, Adam Smith, and the Invisible Hand Changes over Time’, New Institute for Economic Thinking, January 06, 2012, http://ineteconomics.org/blog/playground/how-god-adam-smith-and-invisible-hand-changes-over-time.
Nozick, R. (1994). ‘Invisible-Hand Explanations’, American Economic Review 84(2): 314–18.
Oslington, P. (2012). ‘God and the Market: Adam Smith’s Invisible Hand’, Journal of Business Ethics 108: 429–38.
Persky, J. (1989) ‘Retrospectives: Adam Smith’s Invisible Hand’, Journal of Economic Perspectives 3(4): 195–201.
Raphael, D. D. and Macfie, A. L. (1982c [1759]) ‘Introduction’, in A. Smith, The Theory of Moral Sentiments, D. D. Raphael and A L. Macfie (eds) Glasgow Edition (Indianapolis: Liberty Fund).
Rothschild, E. (1994). ‘Adam Smith and the Invisible Hand,’ American Economic Review 84(2): 319–22.
Rothschild, E. (2001). Economic Sentiments: Adam Smith, Condorcet, and the Enlightenment (Cambridge, MA: Harvard University Press).
Samuels, W. J., Johnson, M. F. and Perry, W. H. (2011). Erasing the Invisible Hand: Essays on an Elusive and Misused Concept in Economics (Cambridge: Cambridge University Press).
Schabas, M. (2003). ‘Adam Smith’s Debts to Nature’, History of Political Economy 35 (supplement): 262–81.
Smith, A. (1981[1776]). An Inquiry into the Nature and Causes of the Wealth of Nations, R. H. Campbell and A. S. Skinner (eds) Glasgow Edition (Indianapolis: Liberty Fund).
Smith, A. (1982a [1795]). Essays on Philosophical Subjects, W. P. D. Wightman and J. C. Bryce (eds) Glasgow Edition (Indianapolis: Liberty Fund).
Smith, A. (1982b). Lectures on Jurisprudence, R. L. Meek, D. D. Raphael, and P. G. Stein (eds) Glasgow Edition (Indianapolis: Liberty Fund).
Smith, A. (1982c [1759]). The Theory of Moral Sentiments, D. D. Raphael and A. L. Macfie (eds) Glasgow Edition (Indianapolis: Liberty Fund).
Smith, A. (1985). Lectures on Rhetoric and Belles Lettres, J. C. Bryce and A. S. Skinner (eds) Glasgow Edition (Indianapolis: Liberty Fund).
Young, J. T. (1997). Economics as a Moral Science: The Political Economy of Adam Smith (Cheltenham: Edward Elgar).
Vaughn, K. I. (2002). ‘Invisible Hand’, The New Palgrave Dictionary of Economics. (New York: Palgrave).
Viner, J. (1928). ‘Adam Smith and Laissez Faire’, in J. M. Clark et al., Adam Smith, 1776–1926 (Chicago: University of Chicago Press).
Viner, J. (1972). The Role of Providence in the Social Order (Princeton: Princeton University Press).
Wight, J. B. (2007) ‘The Treatment of Smith’s Invisible Hand’, Journal of Economic Education 39(3): 34l–58.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2014 Jonathan B. Wight
About this chapter
Cite this chapter
Wight, J.B. (2014). Instincts and the Invisible Order: The Possibility of Progress. In: Hardwick, D.F., Marsh, L. (eds) Propriety and Prosperity. Archival Insights into the Evolution of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/9781137321053_12
Download citation
DOI: https://doi.org/10.1057/9781137321053_12
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-45778-6
Online ISBN: 978-1-137-32105-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)