In 2014, Canadian journalist and author Peter Foster published his ninth book, Why We Bite the Invisible Hand: The Psychology of Anti-Capitalism. This work offers a revealing examination of the history of ideas from Scottish economist Adam Smith, particularly as described in his seminal text, The Wealth of Nations, which was published 250 years ago this year.
Smith's ideas, including the creation of one of capitalism's defining metaphors—the Invisible Hand—have shaped the world economy. Foster writes that the Invisible Hand 'became synonymous with free individuals interacting commercially and having their actions informed and guided by the astonishing cybernetic feedback mechanism of the price system.'
International Recognition
The depth of insight Foster brought to the intellectual and political conflict over Smith's economic ideas is now being recognized internationally. Last week, an Italian translation titled Psicologia dell'anticapitalismo. Perché disprezziamo la mano invisibile was published by the libertarian Istituto Bruno Leoni in Milan.
Timely Exploration
The timing could not be better for a book that explores how armies of anti-capitalist economists, intellectuals, and politicians have long labored to undermine and destroy the principles of market economics. As Foster demonstrates, opponents of Smith's ideas have engaged in tactics far more sinister than merely 'biting' the Invisible Hand.
The deep infiltration of anti-capitalism will be on display next week when the Adam Smith Global Foundation hosts the Adam Smith Festival of Ideas, celebrating the anniversary of The Wealth of Nations. While organizers promise a fun event with entertainment, comedy, poetry, and lectures exploring the future of the global economy, observers question how much the Invisible Hand will be bitten, mauled, or even destroyed during the proceedings.
Critics of Smith
Over the years, Adam Smith and the Invisible Hand have often been dismissed as meaningless, irrelevant, or distortionary. Foster singles out dozens of economic thinkers who have criticized Smith, including U.S. economist Joseph Stiglitz, who won a Nobel Prize in 2001. Stiglitz, a long-time critic of market capitalism, claimed that the Invisible Hand 'is invisible, at least in part, because it is not there.' To this, Foster added: 'One wonders whether Stiglitz ever considered where pencils and iPhones came from.'
Interestingly, Stiglitz is scheduled to deliver comments at the Adam Smith Festival of Ideas. For years, the Smith Foundation has found it useful to bring state-interventionists like Stiglitz to discuss the lack of merit in neoliberal capitalism. Another invitee this year is Prof. Larry Kramer, president of the London School of Economics and former head of the left-leaning Hewlett Foundation, which under Kramer took what The Wall Street Journal called a 'hard left turn,' including funding university programs to 'reimagine capitalism.'
