Savitri Era of those who adore, Om Sri Aurobindo and The Mother.

Sunday, October 21, 2007

Justice is the main pillar of commercial society

Adam Smith was always clear that justice is the main pillar of commercial society. Pollution is not left as an option (any more than child labour is) in modern capitalist societies. It may be in early capitalist societies such as India, China and some other Asian countries, but not in the richer countries.
The reviewer or the author, recognizes that Adam Smith was aware, and said so, 50 plus times in fact, that self interest and selfishness lead to social worsening and not social betterment, and correctly points out that ‘modern disciples’ (mostly self proclaimed) of Adam Smith assert to the contrary, though we can rest assured that they have never read Wealth Of Nations beyond a few second-hand quotations.
Competition is not the root of ‘social ills’; it is their cure. Non-competitive societies, which are usually dictatorships, are always awash with social ills. Russia, China and the socialist countries are the worst polluters and resource wasters. Poverty itself is the worst social ill...
For 18th-century readers of Wealth Of Nations (Book IV.ii.9: p456), who were not economists – more likely to be legislators and people who influence them – he summed this process after clearly explaining it by using a common 17th-18th-century literary metaphor of the invisible hand (see Shakespeare’s ‘Macbeth’, Defoe’s ‘Moll Flanders’ or ‘Colonel Jack’, or Voltaire’s Oedipe: 'Tremble, unfortunate King, an invisible hand suspends above your head’; and ‘an invisible hand pushed away my presents’, etc.,).
The fable of the invisible hand has passed through the string of tenuous development, first as a ‘concept’, then as a ‘theory’, and finally, and banally, a ‘paradigm’! Its origins are located in the environs of 51st Street, Chicago, and which has been propagated all over American academe, via its graduates and the media, until the fable is now regarded as the reality in all expositions of neoclassical general equilibrium theory (after Samuelson and Debreu) and sanctified by Nobel Prize winners from the Bank of Sweden. Is David Kennedy 'the Stupidist Man Alive'? by Gavin Kennedy

1 comment:

  1. Me thinks that the new book The Shock Doctrine by Naomi Klein says everything that needs to be said in relation to this self-serving sophistry.

    Plus these related references tell the unspeakably dreadful truth about an anti "culture" based on unbridled competition.