Gordon Gekko, the villain of 1980's classic movie Wall Street,said ''greed is reasonable'' and he justified all community's fears about the financiers.Disgraceful money ambition,in the brutal World of Manhattan it is not something to be ashamed of anymore;like striped shirt red trousers hanger,it should be wear proudly..
The film shocked everyone ends of the 20th century,but think about how people would respond such a declaration two centuries ago.At that time intellectual life was under the control of the church and it was considered almost insulting to describe people as "economic animals".And now Adam Smith's the idea of ''Invisible Hand'',you can think how people respond it in 18th century more or less.Even so,Smith's book has reached to commercial success and it has been finished at first edition;it is still on classics.The Individual interest is short name of ''The Invisible Hand'' and the law of supply-demand and it explains how these two factors are beneficial for society.The simple idea behind it is:It is not wrong for people to act in their own interests.In a liberal market,to act in their own interests of people,total actions,it does benefit all society and it make rich all.
Smith,classic work of 1776 him '' The Wealth of Nations '' it has been used that phrases three times.But the important paragraphs of work,it has been emphasized importance of ''The Invisible Hand'':
[Every individual] neither intends to protect the public interest nor knows how much s/he can protect it.While managing this [her/his own] business by the method that will reach the maximum value,s/he works only for his/her own benefit,and like in many other subjects,in this,too,and invisible hand makes him/her a part of the work s/he has never intended to do...By affording advantage for his/her own, most of the time,s/he can protect the benefit of society more effectively than the time that s/he has intended to protect it. I've not seen so far that the people acting as if they were trading in the public interest help.References Adam Smith,The Wealth of Nations, Chapter II - Of Restraints upon Importation from Foreign Countries of such Goods as can be Produced at Home
This idea,of free market,the reason of development in complex modern societies,it helps to understand that it is so important.
The course to be taken from ''Invisible Hands'' Let's examine an inventor:Thomas Edison. Thomas has invented a new bulb;more effective from at markets,long-lasting and bright.Thomas had made it for his own interests.;being rich,also maybe hoping to be famous.The related emerged product will be useful for society;it will creat employment both for bulb producers and for it will brighten demanders life.If there was no demand for bulbs,nobody wouldn't pay to Thomas and so invisible hand would have punished him for falling into such a mistake.
Similary,others who see Thomas's job and earn money will also try to make more money from him by designing a better bright bulb.They will start to being rich.But the invisible hand never sleep.At this time Thomas will try to reduce prices and will try to sell more than opponents.
Thomas,at every stage of the process,act for his own interests,doesn't think of society's interests,but unexpectedly the result benefit to all.
Smith specifies that the "invisible hand" is a condition in which we can not operate.One of these,as known ''public property tragedy'' impasse.A related source of- for instance everyone who grazing animals on lands - ,it creates the being limited problem.People,even if their actions are against their neighbors,they continue to using green areas.
The limits of free market In the past decade,the invisible hands doesnt support a related political perspective in fact.In the past decade,the invisible hands does not support a certain political perspective in fact.It is an optimistic theory [please check Micro and Macro],but it goes against the ideas of those who think that the economy should be best managed from the top, or that the government should decide what to produce.
The invisile hand, beside governments and managments,underlines that individuals must decide what is produced and consumed.But,there is important conditions;Smith,makes a distinction with between in individuals own interests and selfish greed.The laws and regulations that protect us from injustice as a being consumers are our own interests.These are,contain property rights,patents and copyrights and workers' rights.The Invisible Hand should support with laws.
``Main MESSAGE
The benefit of the individual is the benefit of the community.
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