Adam Smith and his 'hidden hand' took some stick on FW a week or two ago.
However, the notion is wrongly ascribed to him. He only coined the phrase.
The Catholic Church of the late medieval period had long come to the view
that the "just price" for a good was the market price, so long as there was
sufficient competition between sellers. This, like many other ideas in
Smith's "Wealth of Nations", was really a restatement in secular terms of a
practice that had finally been sanctioned by the Church after many attempts
over the centuries to control prices for the sake of the poor. (When this
was tried, the suppliers of the goods simply decamped and went elsewhere,
so the poor were worse off. This is similar to attempts by governments and
councils to help the poor in more recent times by controlling house rents.
When this happens, landlords sell up.)  Adam Smith's book was more of a
(best-selling) compendium of the many pamphlets that had been published in
the late 16th and early 17th centuries. 
(Joyce Appleby: "Economic Thought and Ideology in Seventeenth-Century
England", Princeton University Press, 1978)

Keith Hudson
   
__________________________________________________________
�Writers used to write because they had something to say; now they write in
order to discover if they have something to say.� John D. Barrow
_________________________________________________
Keith Hudson, Bath, England;  e-mail: [EMAIL PROTECTED]
_________________________________________________

Reply via email to