Wednesday, 12 April 2023

"If that is not a miracle, then nothing is."


"Adam Smith’s 'invisible hand' is certainly the most wondrous, astounding and marvelous concept in all of economics, and there are quite a few doozies in the dismal science. I go further than that. The invisible hand ranks as high or higher, in terms of pure beauty, than even the smile of a baby, the music of Mozart, or the most beautiful sunset that ever took place. In terms of what it means for our potential prosperity, it has no upper bounds whatsoever.
    "Frederic Bastiat perched on the top of the Eiffel Tower, looked down at the people scurrying around far down below him, and marvelled at the fact that Paris Gets Fed, without any central direction at all. This was the invisible hand (that is, free enterprise) at work; you can’t see this 'hand,' but you can discern its effects.
    "We all marvel at the teamwork of the championship basketball team, the winner of the eight-person shell in the regatta, a 100-member orchestra playing 64th notes without a hair’s breadth of discord. But this pales into total insignificance compared to the teamwork made at least potentially possible by the invisible hand; all eight billion of us cooperating producing goods and services and thus fighting poverty. These other accomplishments have a coach, a coxswain, or a conductor. In contrast, when the human race bans protectionism and regulation, the invisible hand will take over without any central direction at all. If that is not a miracle, then nothing is."
~ Walter Block, from his article 'Seeing the Invisible Hand'

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