Thursday , March 28 2024
Home / Mike Norman Economics / Sandwichman — Is the “Invisible Hand” a lump of labor?

Sandwichman — Is the “Invisible Hand” a lump of labor?

Summary:
Debunking the persistent wages-fund and lump of labor fallacies. Thirty years after Hoyt, Leopold Amery delivered a series of lectures in which he evaluated The Fallacies of Free Trade, paying particular attention to Smith's "terminological inexactitude." Smith's concept of capital viewed the capital of a nation as merely an aggregate of individual capitals. The difference, Amery explained, was that an individual's capital "is the result of saving, and grows by saving from profits or by credit based on profits" while the capital of a nation, "grows by the exercise of the qualities and energies of which it consists." In the jargon of systems dynamics, Smith mistook a stock for a flow. EconoSpeakIs the "Invisible Hand" a lump of labor?Sandwichman

Topics:
Mike Norman considers the following as important: , ,

This could be interesting, too:

Angry Bear writes “The Many Faces of Adam Smith”

Matias Vernengo writes What’s the deal with The Smiths

Sandwichman writes ‘A Certain Quantity of Labour to be Performed’

Matias Vernengo writes Classical Political Economy or the Surplus Approach


Debunking the persistent wages-fund and lump of labor fallacies.
Thirty years after Hoyt, Leopold Amery delivered a series of lectures in which he evaluated The Fallacies of Free Trade, paying particular attention to Smith's "terminological inexactitude." Smith's concept of capital viewed the capital of a nation as merely an aggregate of individual capitals. The difference, Amery explained, was that an individual's capital "is the result of saving, and grows by saving from profits or by credit based on profits" while the capital of a nation, "grows by the exercise of the qualities and energies of which it consists." In the jargon of systems dynamics, Smith mistook a stock for a flow.
EconoSpeak
Is the "Invisible Hand" a lump of labor?
Sandwichman
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *