William T Goodall <[EMAIL PROTECTED]>
> The invisible hand is as much a belief as invisible pink unicorns. The  
> 'free market' is just the composite action of people who are mostly  
> very stupid and ignorant.

Hmmm, I thought that was obvious enough to go without saying, but
apparently not.

The "invisible hand" is not real. It is symbolic. In the same way that
evolution describes a random process governed by natural selection.
There is no hand any more than there is an intelligent designer. But
some people find it easier to think of it that way. It is a crutch. Better
not to use it, but if you really need it, probably better than nothing.

What is real are the results of a free(ish) market. It is observable. It
seems to allocate resources in a way that results in progress in
efficiently supplying what people demand while resulting in fewer
violent disputes than the alternatives.

Interestingly, while the people are "mostly" ignorant, there are a few
experts, and they are dominant in setting the prices for the goods and
services in which they are expert. There is an excellent description of
the process in Russell Roberts science-fiction book "The Price of 
Everything: A Parable of Possibility and Prosperity". You can read
the first two chapters at:

http://press.princeton.edu/titles/8733.html



      

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