Visible hand (economics)
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The "visible hand"
In economics, the "visible hand" is generally considered to be the macro-fiscal policy of John Keynes that emerged in the 1930s as a remedy for the shortcomings of Adam Smith's "invisible hand" and advocated government intervention in the economy.[4] Actually, Smith already identified the disadvantages of the "invisible hand".[5] Since then, economists have been building on his insights to explain when and why markets get into trouble and how the visible hand of the government can enable the invisible hand to be more effective.[6]
In the 1930s, Keynes and other economists became clearly aware of the problems of the market economy. He called these problems "market failure" and introduced the idea of adding a "visible hand" to Smith's "invisible hand" to strengthen the regulation of the market economy.[7]
Background
The
Evaluations
Economist
In 2012, an article from The Economist claims that the "invisible hand" of the market is giving way to the "visible hand" of the state capitalism,[14] and that hand is often an authoritarian one.[15]
In 2015, an article from
Market liberalism believes that social distribution by the "visible hand" is morally improper, regardless of its effects, because it will infringe on people's freedom.[17]
See also
References
- ISBN 978-1-351-94189-1.
- ISBN 978-957-08-2645-6.
- ^ "Abbott's message to the world: governments should stand back". The Conversation. January 24, 2014.
- ISSN 1005-4286.
- ^ Jacob S. Hacker and Paul Pierson. "Making America Great Again : The Case for the Mixed Economy". Foreign Affairs. March 21, 2016.
- ISBN 978-1-4516-6783-7.
- ISBN 978-7-5004-4467-1.
- ISBN 978-7-81106-724-8.
- ISBN 978-7-5004-6646-8.
- ^ Robert Clark. "Biden's billions a throwback to Cold War innovation". Light Reading. June 10, 2021.
- ISBN 978-1-137-51942-9.
- ISBN 978-1-119-21844-9.
- ^ Mariana Mazzucato. "Taxpayers Helped Apple, but Apple Won't Help Them". Harvard Business Review. March 8, 2013.
- ^ Adrian Wooldridge. "The visible hand". The Economist. January 21, 2012.
- ISBN 978-0-241-96389-0.
- ^ Subitha Subramaniam. "The rise of the visible hand in economic policy". Financial Times. May 2, 2015.
- ISBN 978-962-996-664-5.