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A Comment on Adam Smith's Invisible Hand Metaphor and
How Adam Smith's Invisible Hand metaphor destroys the government's WAR ON POVERTY argument!  And
Why The State Has A Compelling COMMERCIAL Interest To Teach America's Default Faith In Public School!

 
     I didn't want to write this article.  I would have preferred to make a small contribution to Wikipedia.org's 
Adam Smith's 'Invisible_hand'  article and leave it at that; but when I found my contribution was deleted within a couple of hours, I wanted to preserve the Truth of the godly principles that they can't handle.  Within the Wiki quoted text below [in italic Arial font].   I used Times font and sometimes used  magenta text color for emphasis or clarity.  [Magenta is also used for comments within quotes on this page.]
 
  Background:
        The reference to Adam Smith's Invisible Hand metaphor is defined below.  When I read this I interpreted it as one of those godly principles, discovered by Adam Smith [b.1723 – d.1790] at the apex of the Great Enlightenment, that are everywhere to be found and used for good by the wise.  To quote the Wikipedia:
In economics, the invisible hand is the term economists use to describe the self-regulating nature of the marketplace.[1]  The  invisible hand is a metaphor coined by the economist Adam Smith. Once in The Wealth of Nations [1776] and other writings, Smith tried to show that, in a free market, an individual pursuing his own good self-interest tends to also promote the good of his community as a whole through a principle that he called “the invisible hand.”
        Conversely, It can be easily shown that 'an individual pursuing his own evil self-interest tends to also promote the evil of his community as a whole'.
        "Self-interest" should not be interchanged with "greed" as some of the pundits are currently intimating.  The 1939 Websters Dictionary simply defines the word as 'n. The interest or advantage of oneself; esp., disposition to pursue personal advantage.'.  I believe this to be exercised within legal, ethical and moral bounds.  And under the idea of personal responsibility each of us has a duty to be prepared for some of life's challenges.  This typically begins with self discipline, a job, a savings account and perhaps ownership of property.
        Other multi disciplined thinkers of the time interpreted the metaphor similarly:
  1. During his first Inaugural Address, George Washington said, “No people can be bound to acknowledge and adore the Invisible Hand (emphases added) which conducts the affairs of men more than those of the United States.  Every step by which they have advanced to the character of an independent nation seems to have been distinguished by some token of providential agency…”  
  2. Ludwig von Mises,  [b.1881 – d.1973] in Human Action (see note 3 at the bottom Wiki note), claims that Smith believed that the invisible hand was that of God. He did not mean this as a criticism, since he held that secular reasoning leads to similar conclusions.

Wiki Invisible_hand:  

        On 12/2/08, I edited the Wikipedia article on the "Invisible_hand" under the "Understood as a metaphor" sub title.  The next day it was deleted.  Follow this link to the last two paragraphs in the "Understood as a metaphor" sub title which today (2/23/10) is the same as it was when edited i.e. 12/2/08  [http://en.wikipedia.org/wiki/Invisible_hand#Understood_as_a_metaphor] to which my comments were added as shown below.  The Wiki text is reproduced here in Arial font and my edits are in Times font.

Contrary to common misconceptions, Smith did not assert that all self-interested labour necessarily benefits society, or that all public goods are produced through self-interested labour. His proposal is merely that in a free market, people usually tend to produce goods desired by their neighbours. The tragedy of the commons is an example where self-interest tends to bring an unwanted result.

Moreover, a free market arguably provides numerous opportunities for maximizing one’s own profit at the (addictive)  expense (rather than for the benefit) of others. The tobacco industry is often cited as an example of this: the sale of cigarettes and other tobacco products certainly brings a very good revenue, but the industry’s critics deny that the social benefits (the pleasures associated with smoking, the camaraderie, the feeling of doing something “cool”) can possibly outbalance the social costs.  Among the social costs of addictive behaviors typically affecting the individual, the family and the community are: increased health care costs, reduced life span, reduced productive earnings capacity and lost prosperity of the familyAll of those personal costs put stresses (i.e. divisive divorce stresses) on the social family unit; and, upon the addict's incapacitation or termination, the broken family usually operates at a lower income i.e. poverty level and/or requires social services of one kind or anotherIronically, other addictive behaviors, some with even higher personal, familiar and social poverty costs, are allowed to proliferate e.g. gambling, pornography, homosexuality, prostitution, alcohol and drugs, adultery et al..  [End of Wikipedia quote and edit.]


        The point that the Wiki can't handle is the obvious morality explicit in their own words.
        I looked at the 'tragedy of the commons' example and it appears to fall short as a valid criticism of "self-interest" because it seems to reflect the range wars of the old wild west which was remedied with property ownership, law and order.  And of course there were no range wars where the participants knew how to share.  The media and others are calling a lot of normal good 'self interest' as being greed these days and totally overlooking the evil self-interests.

        Concerning the Criticisms section of the Wiki article, just disregard the atheistic critic's remarks in the Wikipedia "Invisible Hand" article that fly in the face of 390 years of free market capitalism! (or Why the Pilgrims Abandoned Communism.).(2010 - 1620 AD = 390 years.)
 
Sin and Corruption:
        What is not discussed in these articles but is all the rage in the media is "corporate greed".  Since greed is a sin, I think that Adam Smith and von Mises would understand the "Invisible Hand" operating best without greed.  The actions of greed would be considered illegal and legislated that way.  The 'Invisible Hand' would be working within the bounds of integrity and faith, with self satisfaction of a job well done or good products or good service rendered over a life time to their neighbors which satisfys the 'disposition to pursue personal advantage.'.  Today's idea that you can legally make your customer an addict and a victim is evil, fraudulent and self destructive.  For instance, a company that can get you to sign a vague, open ended contract on their part; but, which binds you and enslaves you to their stipulations; and then on top of that, charges you exorbitant interest (usury) is a crisis in waiting, a poverty trap.  Yes I'm indicting banks and credit card companies.  Victimizers supreme.

        Here are some references that prove that various "sinful behaviors" lead to addictions which cause real poverty.  These references expose the immorality of abusive oppressors who legally victimize people that some laws or judges currently permit in our culture.  (Magenta comments by ed.)
[Creators of a new slave class of Poverty i.e. "poverty creators"  - ed]
Addiction: Addiction is a chronic and progressive disorder characterized by the compulsive use of a substance or activity resulting in physical, psychological or social harm to the user and continued use despite the harm that it causes.”

Abortion Linked to Mental Health Problems
, By Lori Johnson CBN News 2009 [http://www.cbn.com/cbnnews/519697.aspx]   [  - ed]
Gambling Addiction - National Gambling Information Center ... Gambling changes the chemistry of the brain, and is one of the most difficult addictions to "cure" ... [ http://web.archive.org/web/20080605061001/http://www.ncalg.org/addiction.htm ] [ PDF ]
News:     Dr. Luke Clark of the Behavioral and Clinical Neuroscience Institute at the University of Cambridge said, "Gamblers often interpret near-misses as special events, which encourage them to continue to gamble. "These data inform … by extrapolation, the capacity of gambling to become addictive and pathological."
    Chad Hills, gambling analyst with Focus on the Family Action, said  "Video gambling is the most addictive form of gambling ever in history," he said. "People are becoming addicted in just one year" ..[ http://www.lifeclinic.com/fullpage.aspx?prid=623984&type=1 ]
 
12-8-2008  Good News: Amsterdam to Close Brothels, Gambling Parlors
     Amsterdam has unveiled a comprehensive plan to close up to half of its businesses that "generate criminality," including brothels, gambling parlors and marijuana cafes. Saturday's announcement also includes offering help for those who lose their jobs as a result of the plan.  Amsterdam legalized prostitution in 2000.
     "It appears that the most liberal city in the world has reached the end of 'tolerance,' " said Daniel Weiss, senior analyst for media and sexuality at Focus on the Family Action. "They have stretched the bonds of so-called human freedom and found that it becomes violent, criminal and abusive - a detriment to society."  [emphasis added. - ed.]
     "Cultures, such as our own, ought to be wise by not allowing society to head toward such licentiousness." - Erin Blad  [10/18/10 broken link: h.ttp://www.citizenlink.org/CLNews/A000008839.cfm]

The 'enormous return' of philanthropies  (This article properly identifies the poverty eliminators" - ed.) http://www.onenewsnow.com/Culture/Default.aspx?id=379562  ("for every dollar in foundation and charitable giving, there was a return of $8.58 in direct economic welfare benefits.")  (The critics in the Invisible_hand article have a hard time acknowledging the life changing success of the various Christian Charities.  Even though success over addictive behaviors can easily be produced like the above; and similarly, other successes where "numbers of people helped" by charities compared to similar "people helped" by government programs typically run close to 75% for charities to 10-15% for government programs.  - ed.)

[Morals: The Real Anti-Poverty Program. - ed.]  [Family Policy Institute of Washington researchers found that children living with both biological parents and in families that attend church regularly had "fewer problem behaviors, more positive social development, and fewer parental concerns about the child's learning and achievement."   Children in this group were also five times (500% ! - ed) less likely to repeat a grade. The results were found after a deep analysis of various government data.  http://www.cbn.com/cbnnews/515529.aspx ]
 

The War on Poverty: [http://en.wikipedia.org/wiki/War_on_Poverty].  
 
       A careful reading of the article above "A Comment on Adam Smith's Invisible Hand Metaphor (I didn't want to write this article.)" will leave you with the certainty of continuous failure of the government's War on Poverty programs and policies.  If the government would just stop the money spending programs and remove those illegal organizations that tempt and victimize citizens and customers with "sinful addictive behaviors", it would be a great improvement for the great society
.
 
     These end notes capitalize on the Wiki text from the Wiki page that reflects the currently strong disfavor of the cigarette
smoking industry.  Let us use their words as a proof test; lets play a game - I mean its 'just words'.  Suppose we were to use the Wiki authors argument condemning the tobacco industry but substitute and incorporate other complicit and addictive industries?  Lets modify it slightly to simplify it and drive the point home using the same text edits [magenta] as before.  Here is the edited Wiki text template.
The tobacco industry blank industry is often cited as an example of this: the sale of the industries products certainly brings a very good revenue, but the industry’s critics deny that the social benefits (the pleasures associated with it, the camaraderie, the feeling of doing something “cool”) can possibly outbalance the social costs.
Then we can say:
The gambling industry is often cited as an example of this: the sale of the industries products certainly brings a very good revenue, but the industry’s critics deny that the social benefits (the pleasures associated with it, the camaraderie, the feeling of doing something “cool”) can possibly outbalance the social costs.  

The 
alcohol and drugs industry is often cited as an example of this: the sale of the industries products certainly brings a very good revenue, but the industry’s critics deny that the social benefits (the pleasures associated with it, the camaraderie, the feeling of doing something “cool”) can possibly outbalance the social costs.

The 
pornography industry is often cited as an example of this: the sale of the industries products certainly brings a very good revenue, but the industry’s critics deny that the social benefits (the pleasures associated with it, the camaraderie, the feeling of doing something “cool”) can possibly outbalance the social costs.
Homosexuality, prostitution, adultery although not necessarily industries are subsets of pornography ...  but the ... critics deny that the social benefits ... can possibly outbalance the social costs.
        All of these addictive behaviors have unintended fall out; namely, personal destruction and familial estrangement and divorce.  The costs of divorce have largely been untabulated until now.  Here is a study that estimates what divorce costs the USA.  This is poverty even individual, familial and social !
"The $112 billion figure represents a “lower-bound” or minimum estimate. Given the cautious assumptions used throughout this analysis, we can be confident that current high rates of family fragmentation cost taxpayers at least $112 billion per year(emboldment added for emphasis, ed.).  The estimate of $112 billion per year is the total figure incurred at the federal, state, and local levels. Of these taxpayer costs, $70.1 billion are at the federal level, $33.3 billion are at the state level, and $8.5 billion are at the local level."  [The Taxpayer Costs of Divorce and Unwed Childbearing – Executive Summary (PDF)]

        This leads one to insist on the continued enforcement of illegal industries like drugs and prostitution; and, we should outlaw gambling and pornography for the good of our great society.  The Supreme Court is one of the biggest contributors to, and supporters of the "poverty creator" industries in the USA today.
 
THE TRUTH ABOUT THE WAR ON POVERTY  IS:
   Gambling stops financial success, legalized gambling increases financial poverty;        http://www.americanvalues.org/pdfs/Why-Casinos-Matter.pdf
   Pornography stops relationships, legalized pornography increases relational poverty;
   Promiscuity stops a marriage, legalized promiscuity increases marital poverty;
   Homosexually stops a family, legalized homosexually increases familiar poverty;
   Abortion stops a human life, legalized abortion increases progeny poverty and ancestral poverty;
   Drugs stop mental success, legalized drugs increases mental poverty;
   Legalized no fault divorce increases social poverty;
   Unrestrained, addictive, sinful behaviors create poverty! 
Legislators, judges, businessmen and schools that promote sin on their watch, contrary to the truth, who lie to their own children, must surely be insane. - rek 5/09 [ Legislators (Dinos & Rinos Profile), whose policies hurt their own children, look like community Dissociative or Non Dissociative self-mutilators i.e. family mutilators.] (A law unenforced is effectively `legalized`.)  What will we legislate:  A loving biblical morality or hateful anarchist liberalism? (
"Love does not delight in evil, but rejoices with the truth." 1 Corinthians 13:6) (12/2012 update:  Alan Sayet wrote a book about "How Liberals Think".  See video 11 min.)   (11/2014 update:  This mass social disfunction is not new but just as bad.  When Pilate said "I am innocent of the blood of this just person: see ye to it".  Then answered all the people, and said, "His blood be on us, and on our children."  Mt 27:25.)

Therefore, Hisways USA, Inc. offers the foregoing text page as proof that: "The State Has A Compelling Interest for Preserving Commerce By Presenting America's Default Faith In Public Education!".   For the rational human being, there is no amount of tax revenue that can justify these industrys': cruelty, victimization of citizens, abuse of individuals and families, and the creation of poverty.  QED. 

Another godly principal sometimes overlooked is that if you do good you will be blessed and if you do evil you will be cursed.  You have heard of the 10 Commandments but have you heard of the 12 Curses?  Even the atheist, if he can think, and if he can see, knows that nothing good comes from sin.  Let us return morality and The Bible to our public schools.

 


IX. Stand Up For Your Children's Faith, / Steward/ship, Discipleship and Discipline with resources.
 Web Directory (TOC)
 VIII. / Liberty /  Defenders: <<== Previous |  CHAPTER |  Next ==>><X. Cooperating Ministries: /Coop-min/

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