Showing posts with label adamsmith. Show all posts
Showing posts with label adamsmith. Show all posts

Monday, September 21, 2015

Smith Makes Full Sense Only With Bastiat

My reading of the invisible hand principle is not that if everyone follows their self-interest, socially optimal outcomes will result, but that the best way to satisfy one's self-interest is to satisfy the interests of others. In other words, the former is true, but only given the recognition of the economic harmony of all peaceful interests: Smith starts to make full sense only when combined with Bastiat.