The invisible hand

Research Essay

Econ 318

DingChuan Xue

29861168

The Essay will discuss the idea of invisible hand proposed by Adam Smith, in that it is the “unintended consequence of a trickle-down effect” in wealth distribution. As a result of individuals pursuing their own individual interests, wealth transaction enhanced by mechanization, and divisions of labour, and the idea of invisible hand enhances the utility of society. Incorporating the referencing papers, the essay will attempt to interpret Smith’s idea of the invisible hand through the lens of advances in economic theories such as divisions of labour, morals of social nature reflected, and the economic utility maximized.

References

Stefano Fiori, Adam Smith on Methods: Newtonianism, History, institutions, and the invisible hand, Journal of the History of Economic Thought, Volume 34, Issue 3, pp 411-435, 2012

Anthony Brewer, On the Other Hand, History of Political Economy, Volume 41, Issue 3, pp 519-543, 2009

Terry Peach, Adam Smith’s Optimistic Deism, the Invisible Hand of Providence, and the Unhappiness of Nations, History of Political Economy, Volume 46, Issue 1, pp 55-83, 2014

Amos Witztum, Interdependence, the invisible hand, and Equilibrium in Adam Smith, History of Political Economy, Volume 42, Issue 1, pp 155-192, 2010