by Thomas R. Wells
“[B]y directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention….By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good.” (Adam Smith, The Wealth of Nations, IV.2.9)
Doing right by others is difficult and time-consuming. Hence the attraction of what I call ‘invisible hand ethics’. This is modelled on Adam Smith’s famous account of how the overall outcome of lots of self-interested actions in the economic sphere can be good for society as a whole. Bakers just want to make a buck, but their self-interest produces the bread that feeds the people. Their competition for sales keeps prices down. The customers in turn just want the cheapest best bread, but wind up helping the best bakers make a good living. You get the idea. Smith claimed that in the economic domain this could be a far more reliable mechanism for achieving good outcomes than good intentions.
Invisible hand ethics has long since conquered economics. We no longer worry, as theologians did (they still do – but we don’t listen anymore), about whether it is ethical for businesspeople to make a profit beyond what they deserve for their work; whether prices should be proportionate to people’s ability to pay; whether a life of money making is a good one. The duty of the businessperson – as taught in every business degree, magazine, and TV gameshow – is to help her company win the game and take home the profit prize.
The idea of moral desert is still there. But now merit is decided by economic outcomes (price and demand), not by the moral inputs (the character or intentions of those concerned). Economic ethics has been outsourced to the markets. It is now a property of the system rather than of individuals.
Invisible hand ethics has spread. It can now be found far beyond the economic domain, especially in the professions organised around antagonistic competition, such as politics, science, sport, academia, law, and journalism. Lawyers strive to tell the story that best suits their client’s interest; scientists race to make discoveries first; politicians compete for votes so as to gain power; etc. The invisible hand is supposed to transmute this aggressive pursuit of self-interest by individual players into values like truth and justice and prosperity. For example, competition between politicians keeps them subservient to the people and encourages a vigorous public debate about where our society should go. Thus, democracy.


