ECON 104 Lecture Notes - Lecture 3: Invisible Hand
Document Summary
He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention (smith) By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it (smith) Markets will guide us to what"s best for the group. So what: laissez-faire (hands off, government"s hands off the market, markets are best equipped to provide for society"s interests. How you make sense of the world. What you believe shapes what you see. Competing views can co-exist, but: not all views are equally valid. Exchange-based approach: happy, e. g. farmers" markets. Dichotomy: something with 2 parts, only 2 choices, there is no in-between. Overwhelmingly, economists subscribe to the dichotomy between positive and normative economics. Doesn"t matter what your opinion is, it just is. Facts: gathering data and recording facts.
