Law of Value - Smith's Hidden Hand

Smith's Hidden Hand

Neo-classical economics holds that, left to themselves, markets will balance supply and demand relatively quickly. If equilibrium does not exist, it will exist in the future, provided obstacles to market functioning are cleared away. But this idea goes right back to the classical political economy of Adam Smith (and even earlier theorists).

Read more about this topic:  Law Of Value

Famous quotes containing the words smith, hidden and/or hand:

    The wretchedness of being rich is that you live with rich people.... To suppose, as we all suppose, that we could be rich and not behave as the rich behave, is like supposing that we could drink all day and stay sober.
    —Logan Pearsall Smith (1865–1946)

    The beginning, middle, and end are parodied, reversed, and hidden by modernism, but not abandoned.
    Mason Cooley (b. 1927)

    The triumphs of peace have been in some proximity to war. Whilst the hand was still familiar with the sword-hilt, whilst the habits of the camp were still visible in the port and complexion of the gentleman, his intellectual power culminated; the compression and tension of these stern conditions is a training for the finest and softest arts, and can rarely be compensated in tranquil times, except by some analogous vigor drawn from occupations as hardy as war.
    Ralph Waldo Emerson (1803–1882)