The Invisible hand

As we all know in the theories of economies, there are many definition that you won’t find anywhere else, like; Industrial Policy, Zero Sum Game, Ect.. but among them, there’s one that really piqued my interest, The Invisible Hand.

So what is the Invisible Hand? Not it’s not the hand of a man who’s been engineered himself with the ability of a chameleon (obviously), the Invisible Hand in economics theories, is a metaphor created by by Adam Smith in his book “The Theory of Moral Sentiment” (1759), to describe the self-regulating behavior of the marketplace. 

“Individuals can make profit, and maximize it without the need for government intervention. individuals' efforts to maximize their own gains in a free market may benefit society, even if the ambitious have no benevolent intentions.”

The Invisible Hand itself is only a theoretical concept, but many economist try to interpreted it even further. For example, the noble prize winner, Milton Friedman says that The Invisible Hand are the possibilities of cooperation without coercion, meaning that if the buyer are free to buy what he wants, and the seller are free to sell what he want with the means to produce it, the market price will be great for everybody.

Beside Milton Friedman, there are many economist that also interpreted The Invisible Hand beyond it’s original concept D. H. MacGregor and Stephen Marglin.  And there’s also also those that criticizes this concept. Like Joseph E. Stiglitz who said, as to my understanding, that the Invisible Hand is Invisible because it almost never was there, in other word, there’s no such thing as an Invisible Hand, because the market without the help from the goverment, cannot function as much as it should.

“Whenever there are "externalities"—where the actions of an individual have impacts on others for which they do not pay, or for which they are not compensated—markets will not work well.“

So now we know at least a little bit about The Invisible Hand, and the people that support and criticizes this concept. And now to leave you guys with a little quote I heard in class, because that’s always the best way to end things.

“The Invisible Hand is usually paired with a Bloody Hand, in fact, the usually came from the same conductor” 

Achmad Rizky Aditya 1701357733

Sources are various (really sorry about that)

Is Industrial Revolution Okay?

   

    Industrial Revolution was conducted on the middle 18th century. In this era, the industrial machines were increased in development of trade. The machines were used for decreasing resources and helpful to produce goods in short time and also improved efficiency in every worker activities. The impacts of industrial revolutions always back on people. In the late of 17th century, there were so many people dying because of malnutrition, with an increased in technology in agriculture, it could decreased the rate of people dying. It was easy to control food to fed people. Not just the food but also advances in telecommunication, household, transportation, and many more are increase in today. Today, the invention of technologies keep growing and modern wave comes out. Although they all good, but there always be the bad impacts.

    If we go back to history, the negative sides of industrial revolution were laid on workers. In Britain industrial era, many labors were women and children with low payment and the salary should given to the husband under the law in Britain. It was the poor law that could not made welfare but humiliating instead. There were no laws to protect workers or compensation for injury on job in factory even it was happened a lot. The conditions in the industrial places were unhealthy and not qualified to be place to live for workers. The voices of labour were not necessary to be heard in government. So that was ironic to live in that day where was no freedom or even happiness.

    As the world growing right now, industrial drove us to illness. It is true, because of the industrial involved in the damage of ecology. The wastes of industrial were many dumped on river and also the pollution created by factory were treacherous the ecosystem and of course people. The problems of social life also continue in these days, not only conducted in industrial revolution era in Britain. The class structures as we seen today still happen, but now even the payment not given for husbands there are women and children continue to be exploited and the workers also have to face dangerous risks when working. The growth of technology in controlling food also has negative effects. Many foods that had been treated in factory did not healthy enough to consume because there’s a lot of preservatives that harm human body for 10 to 20 years later.

    In the existences of industrial these nowadays is giving many perspectives to us. Even the growth of technology in industrial could help company to produce goods and easier for workers as helper too but in other conditions it led the earth comes horrible. The effects can we feel right now as we see the global warming today that against people belong to earth not earth belongs to people. It also harms the human body and change the structure of socialism. It’s better if there are sufficient wage for workers and sufficient time to break as the rights of workers and led them to welfare not only the capital owners. Although the world comes much better right now, the conflicts of these industrial effects still be continue.

posted by,

Safira Damayanti

1701357090

sources:

https://reports.success-ode-state-oh-us.info/oh%20pars%20teaching%20tools/Hessential_tactic2OH_OGT_H_HISTORY_10_1.html

http://www.clemson.edu/caah/history/facultypages/pammack/lec122sts/hobsbawm4.html

http://en.wikipedia.org/wiki/Industrial_Revolution#Social_effects

http://www.ecology.com/2011/09/18/ecological-impact-industrial-revolution/

http://www.studymode.com/essays/Industrial-Revolution-Strikes-Good-And-Bad-175998.html