Econ 479

The Art of Writing, the Science of Economics

Bad economic ideas

Adam Smith used the phrase “invisible hand” only once in “The Wealth of Nations,” and he probably didn’t mean to say what most people now think he said. But never mind: Today the phrase is almost always used to mean the proposition that market economies can be trusted to get everything, or almost everything, right without more than marginal government intervention.

Is this belief well grounded in theory and evidence? No.

See here for an economic-thinking-dense review by Paul Krugman of, naturally enough, a book about economics.


Written by gregorymcnamee

September 28, 2014 at 11:15 pm

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