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:

    Growing old is no gradual decline, but a series of tumbles, full of sorrow, from one ledge to another. Yet when we pick ourselves up we find no bones are broken; while not unpleasing is the new terrace which stretches out unexplored before us.
    —Logan Pearsall Smith (1865–1946)

    Opinions are to the vast apparatus of social existence what oil is to machines: one does not go up to a turbine and pour machine oil over it; one applies a little to hidden spindles and joints that one has to know.
    Walter Benjamin (1892–1940)

    A strong nation, like a strong person, can afford to be gentle, firm, thoughtful, and restrained. It can afford to extend a helping hand to others. It’s a weak nation, like a weak person, that must behave with bluster and boasting and rashness and other signs of insecurity.
    Jimmy Carter (James Earl Carter, Jr.)