The invisible hand image is at the centre of contemporary debates about capacities of markets, on which discussion of many other topics in business ethics rests. However, its meaning in Adam Smith’s writings remains obscure, particularly the religious associations that were obvious to early readers. He drew on Isaac Newton’s theories of divine action and providence, mediated through the moderate Calvinism of the eighteenth century Scottish circles in which he moved. I argue within the context of Smith’s general providential account (...) of markets, the invisible hand operates restrain inequality and capital flight, thereby stabilizing the market system. Such an understanding of the invisible hand raises questions for contemporary religious and secular discussions of the capacities of markets in the wake of the global financial crisis. (shrink)

It is a commonplace that the writers of eighteenth century Scotland played a key role in shaping the early practice of social science. This paper examines how this ‘Scottish’ contribution to the Enlightenment generation of social science was shaped by the fascination with unintended consequences. From Adam Smith's invisible hand to Hume's analysis of convention, through Ferguson's sociology, and Millar's discussion of rank, by way of Robertson's View of Progress, the concept of unintended consequences pervades the writing of the period. (...) The paper argues that the idea of unintended order shapes the understanding of the purpose of theoretical social science that emerges from the Scottish Enlightenment. (shrink)

The article shows that in Foucault’s late 1970s and early 1980s analyses of pastoral, conductive power—most essentially in early and medieval Christianity—the issue of sight and visual perception recurs and occupies a crucial status. In Foucault’s discussion, these Christian relations of power, knowledge, and truth are attached with a surveying gaze that is both totalizing as well as individualizing, one that is mobilized by the thrust towards perfect visibility, transparency, and illumination of the subject turned into an object. The intention (...) is also to develop Foucault’s analysis further, by demonstrating how Christian, providential government can be and actually has been detached from the totalizing modality of optics, and instead become articulated with a very different sort of sight and seeing, one that is non-totalizing and affirms its own limits. The article maintains that from this angle, Foucault’s conception of modern, economic-liberal governmentality has essential convergences with the Christian form of providential government, even though Foucault himself leaves these convergences partly inarticulate. (shrink)

Jacob Viner introduced the term ‘sub-rational’ to characterize the faculties – human instinct, sentiment and intuition – that fall between animal instinct and full-blown reason. The Scots considered sympathy both an affective and a physiological link between mind and body, and by natural history, they traced the most foundational societal institutions – language and law, money and property – to a sub-rational origin. Their ‘social evolutionism’ anticipated Darwin's ‘dangerous idea’ that humans differ from the lower animals only in degree, not (...) in kind. Darwin had the ability to ‘trade places in the imagination’, as Adam Smith would say, with plants and animals, and ‘think’ as they do. The trend today is to ‘positivize,’ ‘behaviorize’ and otherwise reduce the sub-rational to the purely biological. My suggestion is that we trade places in the imagination with the Scottish moral scientists and Darwin, and try thinking as they did. (shrink)

Folk-economic beliefs may be regarded as “evidential fictions” that exploit the natural tendency of human cognition to organize itself in narrative form. Narrative counter-arguments are likely more effective than logical debunking. The challenge is to convey sound economic reasoning in narratively conspicuous forms – an opportunity for economics to rethink its role and agency in public discourse, in the spirit of its old classics.

: This study is an analysis of the theological and ethical dimensions inthe writings of Adam Smith. It deals with aspects of philosophy and intellectualhistory. By revealing the theological and ethical roots of Smith’s writings in theformation of modern economics, arguments for an economics that is based onIslamic foundations become stronger. The study will therefore lay out the basicmoral project of Smith and then contextualize it in the Western Enlightenmenttradition. It shows how religious discourses were instrumental in shaping thethoughts and (...) ideas of Enlightenment in general, and economics in particular.The study will then give a brief overview of traditional Islamic theology andethics in order to give directions for future research. (shrink)

Recent studies have investigated connections between Adam Smith’s economic and philosophical ideas and Catholic Social Teaching (CST). Scholars argue that their common background lies in their respective anthropologies, both endorsing a relational view of human beings. I raise one main concern regarding these analyses. I suggest that the relationality endorsed by Smith lacks a central element present in CST—the other-oriented perspective which is the intentional concern for promoting the good of others. Some key elements of CST, such as love, gift, (...) gratuitousness, and fraternity, find a very different space in Smith’s social view and very little space in his economic view. Moreover, I show how CST relationality is more in accordance with a civil economy view of the market as a place of fraternity and mutual assistance. (shrink)

Globalisation Considering the Multitude of Worlds This book deals with globalisation, its foundations, its rise and fall and the question of its future. It discusses the conditions that have led, each in its own way, to the reduction of the many worlds to one. The first foundations were laid in the time of the discoveries, the earth was recognised and measured as a unified space. Missionary work and colonisation have made the geographical unit into a unity of fundamental beliefs, values (...) and Western European languages. The brisk trade with the colonies also unified the financial and economic situation of the conquered foreign worlds, which were managed according to Western patterns. The small gain of the political independence of the states achieved in the decolonisation movement was unfortunately destroyed by the great losses already suffered in the area of the fundamental values of the original worlds, their languages, their ways of living, their faith. In the new situation it became apparent that the economic dependence on the former colonial states was increasing rather than decreasing, the way of doing politics had remained by habit that of the colonial powers. Decolonisation was not a way back to the old world. Two metaphysical assumptions of globalisation are discussed in more detail. One is the assumption of realism that the world is one. This assumption justifies missionary and colonialist action. On the other hand, there is the thesis of liberalism that the being of the beings is its economic value. Against the realistic assumption of the one world, arguments are put forward which justify and make plausible the opposite assumption of a multitude of worlds. Now that the world is de facto one thanks to globalisation, and now that it is suffering from problems that affect all people, a new kind of globalisation is needed, one that recognises and respects different worlds on the one hand, but is nevertheless capable of tackling environmental, financial and social problems together. Depending on the subject, two very different ways of reasoning are used. In the preparatory historical part, the arguments are empirical and stick to details; in the part dealing with the justification of the multiplicity of worlds, the argumentation is theoretical, not to say speculative. (shrink)

This article critiques the account of the invisible hand theory that individual actions bring about macro-level social benefits. The standard account of the invisible hand theory asserts that individual actions, motivated mostly by self-interest, advance the common good inadvertently and unknowingly. The invisible hand theory provides explanation how social reality, such as emergence of language, social morality and culture, evolve through individual actions. The account of the invisible hand embedded in self-interest is generally attributed to Adam Smith. Adam Smith’s account (...) of the invisible hand is centred on self-interest and freedom. In the invisible hand theory, freedom unfetters individual actions based on self-interests and promotes a kind of competition in an economic sense, which is known as capitalism. Certainly, the account of the invisible hand theory, which is based on only self-interest is un-Smithian. I argue that although the invisible hand theory provides an adequate explanation for the evolution of language, morality, culture, and market, it promotes an unbridled capitalism, which, in an economic sense, may cause malign consequences. In qualitative research methodology, I adopt the empirically informed philosophical analysis method to documentary resources, including journal papers, academic books, and proceedings of conferences and congresses. (shrink)

Although both books discussed in this review essay address problems with relevance to our present day and its dilemmas, they have different chronological scopes and employ different methods of interpretation. Robertson focuses exclusively on the era of the “Enlightenment” (c. 1680–1790), eschewing overt “presentism” to treat a wide range of authors and works as they addressed one another in the context of the events and developments of the period, mainly in Britain, France, and Germany. Friedman's aim, emphasizing the role of (...) “religious” thought, is to explore the roots of present-day “thinking” about economics as a “science” and debates about economic policy. His book, beginning its coverage in Western Europe in the later 17th century and, following a “history of ideas” approach, gives pride of place to Adam Smith's ideas in the formulation of a “coherent” economic theory, and then in a linear account, centered on America, describes the key steps that he argues led from Smith to the present. This review essay, concentrating on what each book has to say about the Enlightenment, juxtaposes their accounts of the era and offers critical judgment of their differing treatments of its character and accomplishments. (shrink)