Poznan Studies in the Philosophy of the Sciences and the Humanities 96 (1):207-224 (2008)
|Abstract||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.|
|Keywords||No keywords specified (fix it)|
|Through your library||Configure|
Similar books and articles
K. Brad Wray (2000). Invisible Hands and the Success of Science. Philosophy of Science 67 (1):163-175.
Andy Denis (2005). The Invisible Hand of God in Adam Smith. Research in the History of Economic Thought and Methodology 23 (A):1-32.
Ross B. Emmett (2011). Man and Society in Adam Smith's Natural Morality : The Impartial Spectator, the Man of System, and the Invisible Hand. In Paul Oslington (ed.), Adam Smith as Theologian. Routledge.
Aki Lehtinen (2009). Intentions in Invisible-Hand Accounts. Journal of Economic Methodology 16 (4):409-416.
Toni Vogel Carey (1998). The Invisible Hand of Natural Selection, and Vice Versa. Biology and Philosophy 13 (3).
Alistair M. Macleod (2007). Invisible Hand Arguments: Milton Friedman and Adam Smith. Journal of Scottish Philosophy 5 (2):103-117.
Craig Smith (2006). Adam Smith's Political Philosophy: The Invisible Hand and Spontaneous Order. Routledge.
David L. Hull (1997). What's Wrong with Invisible-Hand Explanations? Philosophy of Science 64 (4):126.
John D. Bishop (1995). Adam Smith's Invisible Hand Argument. Journal of Business Ethics 14 (3):165 - 180.
Paul Oslington (forthcoming). God and the Market: Adam Smith's Invisible Hand. Journal of Business Ethics.
Added to index2009-03-09
Total downloads31 ( #39,385 of 549,197 )
Recent downloads (6 months)1 ( #63,397 of 549,197 )
How can I increase my downloads?