REGULATING THE MARKET - THE INVISIBLE HAND

I subscribe to an excellent blog called LeaderFOCUS. Kenneth Kemp, its author provides a variety of analyses on a variety of topics to provide encouragement to leaders. Recently he shared an article on the economy called "The Invisible Hand". (The article is coprighted). I excerpt a piece and invite you to link to the full article and subscribe to his weblog.

"Adam Smith, the Scottish professor of philosophy who published his magnum opus the same year that the American Colonies formally declared their independence from the British monarchy (1776), is generally known as “the father of modern economics.” The Wealth of Nations remains a classic to this day.

"A fierce believer in free markets, Adam Smith postulated that a truly free and open market would be by definition a self-regulating enterprise. The rules of the game ought to be developed and enforced, but no government can possibly police every transaction in a booming economy. He believed that the market itself would keep self-interest in check. An “invisible hand,” he said, would both push the economy towards steady growth and keep it from overheating.

" ...From Adam Smith’s analysis, the concept of “fair market value” (FMV) is a guiding light. When a willing seller and a willing buyer agree on a price, we have fair market value. Throw in the “Golden Rule” (“do unto others what you would have done to you”) and the market takes care of itself. For the Scotsman, integrity and character are essential. Fairness and mutual respect remain at the core of an efficient market."

Follow the link for the full article and comments: KEMP