A Quote by Robert H. Frank
Adam Smith's uncritically enthusiastic modern disciples portray his invisible hand theory as saying that market forces reliably harness selfish individuals to serve the common good. That's often true, but as Darwin recognized clearly, many traits that serve the interests of individual animals make life more difficult for larger groups.
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As the great naturalist Charles Darwin saw clearly, individual and collective interests often coincide, as in the invisible hand narrative. But he also saw that in many other cases, interests at the two levels are squarely in conflict, and that in those cases, individual interests generally trump. That simple observation suggests that market failure is often the result not of insufficient competition (the traditional charge from social critics on the Left), but of the very logic of competition itself.
Civilization is to groups what intelligence is to individuals. It is a means of combining the intelligence of many to achieve ongoing group adaptation.
Civilization, like intelligence, may serve well, serve adequately, or fail to serve its adaptive function. When civilization fails to serve, it must disintegrate unless it is acted upon by unifying internal or external forces.
A Chinese paleontologist lectures around the world saying that recent fossil finds in his country are inconsistent with the Darwinian theory of evolution. His reason: The major animal groups appear abruptly in the rocks over a relatively short time, rather than evolving gradually from a common ancestor as Darwin's theory predicts. When this conclusion upsets American scientists, he wryly comments: "In China we can criticize Darwin but not the government. In America you can criticize the government but not Darwin."
People who intend only to seek their own benefit are “led by an invisible hand to serve a public interest which was no part of” their intention. I say that there is a reverse invisible hand: People who intend to serve only the public interest are led by an invisible hand to serve private interests which was no part of their intention.
The dreams of "leaving it up to the market" or of returning to a politically neutral gold standard cannot succeed because the nature of the monetary system has a profound impact on the interests of powerful groups and states. Affected groups and states will always try to intervene in the operation of the system to make it serve their interests.
Hackman's paradox: Groups have natural advantages: they have more resources than individuals; greater diversity of resources; more flexibility in deploying the resources; many opportunities for collective learning; and, the potential for synergy. Yet studies show that their actual performance often is subpar relative to "nominal" groups (i.e. individuals given the same task but their results are pooled.) The two most common reasons: groups are assigned work that is better done by individuals or are structured in ways that cap their full potential.
If you go back to Adam Smith, you find the idea that markets and market forces operate as an invisible hand. This is the traditional laissez-faire market idea. But today, when economics is increasingly defined as the science of incentive, it becomes clear that the use of incentives involves quite active intervention, either by an economist or a policy maker, in using financial inducements to motivate behavior. In fact, so much though that we now almost take for granted that incentives are central to the subject of economics.
But Adam Smith was a philosopher as well as well as an economist, famous in his time as much for his Theory of Moral Sentiments as for The Wealth of Nations. And as he understood so well, society is more than the sum of its individual parts.
As against the "invisible hand" of Adam Smith, there has to be a visible hand of politicians whose objective is to have the kind of society that is caring and humane.
Competing is intense among humans, and within a group, selfish individuals always win. But in contests between groups, groups of altruists always beat groups of selfish individuals.
The more we serve our fellowmen in appropriate ways, the more substance there is to our souls. We become more significant individuals as we serve others. We become more substantive as we serve others—indeed, it is easier to “find” ourselves because there is so much more of us to find!
Wars between states and people seem to have existed under all historical systems for as long as we have some recorded evidence. War is quite clearly not a phenomenon particular to the modern world-system. On the other hand, once again the technological achievements of capitalist civilization serve as much ill as good. One bomb in Hiroshima killed more people than whole wars in pre-modern times. Alexander the Great in his whole sweep of the Middle East could not compare in destructiveness to the impact of the Gulf War on Iraq and Kuwait.
That invisible hand of Adam Smith seems to offer an extended middle finger to an awful lot of people.
When you are dealing with two players who are almost mirror images, the contest often boils down to first-serve percentage. Who is getting more cheap points on their first serve? Who can dominate the other guy's second serve?
I believe that the only possible reason for our being here is to serve in some form or another but that the form is not always readily found or recognized. And I've noticed that those who refuse to serve often wind up as slaves.
I agree with the basic principle that anybody who wants to serve in our armed forces and make sacrifices on our behalf, on behalf of our national security, anybody should be able to serve. And they shouldn't have to lie about who they are in order to serve.
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