Machines, Bodies and Invisible Hands: Metaphors of Order and Economic Theory in Adam Smith

This book analyzes how Adam Smith's economic theory took shape by examining the formation of concepts of market and social order in his work. It suggests that metaphors provided a framework for Smith's theory, influencing its development. The book interprets Smith's thought in light of various aspects and considers the role of pre-analytical concepts in the formation of structured concepts.

Format: Hardback
Length: 242 pages
Publication date: 24 October 2021
Publisher: Springer Nature Switzerland AG

Adam Smith's intellectual laboratory was a rich and dynamic environment where his economic theory took shape. It was a place where he explored and developed concepts that would revolutionize the understanding of markets and social order. In this book, we will delve into the formation of these concepts and examine the various aspects of Smith's approach.

One of the key elements of Smith's theory was his use of metaphors and pre-analytical concepts. These tools helped him to frame his ideas and provide a framework for his analysis. Metaphors, in particular, played a significant role in shaping Smith's thinking. They allowed him to describe complex economic phenomena in simple and relatable terms, making it easier for his readers to understand his ideas.

For example, Smith used the metaphor of the "invisible hand" to explain how markets work. He argued that individuals acting in their self-interest would lead to an overall outcome that benefits society as a whole. This metaphor provided a powerful way of explaining how markets can self-regulate and achieve equilibrium without the need for government intervention.

Pre-analytical concepts, on the other hand, were ideas that were not yet fully formed or structured. They were often based on observations and experiences and provided a foundation for further analysis. Smith's use of pre-analytical concepts helped him to develop his theory by providing a starting point for his inquiry.

For example, Smith observed that different countries had different levels of economic development and that trade was a key factor in promoting economic growth. He developed the concept of comparative advantage, which states that a country can specialize in producing goods and services in which it has a relative advantage over other countries. This concept provided a framework for understanding how countries can benefit from trade and promote economic development.

Another important aspect of Smith's theory was his emphasis on the role of institutions in promoting social and economic order. He argued that institutions such as property rights, contracts, and markets were essential for creating a stable and prosperous society. These institutions provided a framework for individuals to interact and exchange goods and services, and they helped to prevent the abuse of power and promote fairness and justice.

However, some critics have argued that Smith's metaphors of order were merely residual and ornamental expressions. They argue that his theory was primarily based on empirical observations and that his metaphors were used to add flavor and appeal to his work. While it is true that Smith's metaphors played a significant role in shaping his theory, it is important to recognize that they were not the sole basis of his analysis.

In conclusion, Adam Smith's intellectual laboratory was a rich and dynamic environment where his economic theory took shape. His use of metaphors and pre-analytical concepts provided a framework for his analysis and helped him to develop his theory of markets and social order. While some critics have argued that his metaphors were merely ornamental, it is clear that they played a significant role in shaping his thinking and providing a basis for his theory. This book aims to provide a comprehensive interpretation of Smith's thought, taking into consideration various aspects of his work and exploring the nature and causes of social and economic order.

Weight: 486g
Dimension: 210 x 148 (mm)
ISBN-13: 9783030852054
Edition number: 1st ed. 2021