The Myth of the Invisible Hand: A Discussion on Incomprehensible and Misused Concept of Economics

Year 2023, Volume: 31 Issue: 57, 131 - 155, 26.07.2023

Betül Sarı Aksakal

https://doi.org/10.17233/sosyoekonomi.2023.03.07

Abstract

The invisible hand is one of the most familiar and misunderstood concepts popularised by Adam Smith. Smith is the pioneer of the recognisance of economics as a social science. Thanks to the invisible hand mechanism, Smith argues that all economic activities in markets have no shortage of state intervention thanks to perfect competition. Markets consistently and spontaneously come to equilibrium at the full employment level via that. However, this mechanism is a myth, learned worldwide for years. Since the historical process, the state has always been at the stage in the constitution of a market order in economies. However, the underlined roles of the state have evolved correspondingly with the evolution of economic theories. In this context, the economic theories that have specified the general framework of economics are discussed in this paper. Eventually, it is concluded that the state always remains at the forefront of economies as a mechanism that backs up the formation of the market economy. Further, the process of COVID-19, which is expected to licking a new shape to economic theories, has also been investigated very briefly in this connection.

Keywords

Classical Liberalism, Keynesian Theory, Neoliberal Theory, Market Economy, Visible Hand, State

Supporting Institution

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Thanks

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Görünmez El Miti: İktisadın Anlaşılmayan ve Yanlış Kullanılan Kavramı Üzerine Bir Tartışma

Abstract

Görünmez el, Adam Smith tarafından popülerleştirilen kavramların en bilineni ve belki de en yanlış anlaşılanıdır. Smith, iktisadın sosyal bir bilim olarak kabul edilmesine öncülük etmiştir. Görünmez el mekanizması vasıtasıyla piyasalarda gerçekleştirilen tüm ekonomik faaliyetlerin herhangi bir müdahaleye gerek olmaksızın yönlendirilebileceğini ve piyasaların daima dengeye getirilebileceğini savunmuştur. Ancak yıllardır tüm dünyada bu tanımlarla öğretilen bu mekanizma, aslında bir mitten ibarettir. Zira tarihsel süreç içerisinde devlet, ekonomilerde piyasa düzeninin oluşturulmasında her zaman ön planda yer alan bir aktör konumundadır. Ancak devletin altı çizilen rolleri, iktisat teorilerindeki evrime paralel olarak değişmiştir. Bu bağlamda makalede, dünyada ekonomi politikalarının genel çerçevesini belirleyen iktisat teorileri tartışılmıştır. Devletin piyasa ekonomisini kuran bir mekanizma olarak, ekonomilerde her zaman sahnede olduğu sonucuna varılmıştır. Ayrıca, dünyada iktisat teorilerine yeni bir şekil vermesi beklenen COVID-19 süreci de kısaca bu kapsamda incelenmiştir.

Keywords

Klasik Liberalizm, Keynesyen Teori, Neoliberal Teori, Piyasa Ekonomisi, Görünen El, Devlet

Project Number

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