Commentary on Alan Greenspan's declaration at the Adam Smith Memorial Lecture

Résumé du document

The current economic climate is considered to be bleak. There is a general sentiment of blame and anger towards individuals and institutions who partook in profiteering without any regard of consequence or fiduciary duty. Many people worked towards fulfilling their own self-interests at the expense of others and eventually to the detriment of the global economy. Is this the "invisible hand" at work? Upon reflection do Adam Smith, Butcher, Baker and Brewer still share a mutually beneficial relationship by working to realize their respective self-interests. This reflection consequentially leads us to question the relevance of Alan Greenspan's lecture "Adam Smith's invisible hand still delivers the goods".

Extraits

[...] We have simply been shown that alone this hand is not enough to ensure that everyone is more prosperous. There seems to be an opening for some sort of regulation which balances the preservation of self-interest and ambition with the protection of mutual benefit. Alan Greenspan's speech relies on the “invisible hand” as the prevailing if not sole determinant of world commerce, this now is apparently a dated conclusion. Therefore the lecture is irrelevant as well as inappropriate when reviewed today. [...]

[...] Commentary on Alan Greenspan's declaration at the Adam Smith Memorial Lecture The current economic climate is considered to be bleak. There is a general sentiment of blame and anger towards individuals and institutions who partook in profiteering without any regard of consequence or fiduciary duty. Many worked toward fulfilling their own self-interest at the expense of others and eventually to the detriment of the global economy. Is this the “invisible hand” at work? Upon reflection do Adam Smith's Butcher, Baker and Brewer still share a mutually beneficial relationship by working to realize their respective self-interests. [...]

[...] Globalization has led to mutual dependency. We are now in a world where not all but most either rise or fall together. The Butcher must now not think only of how to grow his success but additionally of how to do so with a conscientious effort not to harm the Baker or the Brewer. An excerpt of Alan Greenspan's lecture goes on to say vast majority of economic decisions today fit those earlier presumptions of individuals acting more or less in their rational self-interest. [...]