God and the Market: Adam Smith’s Invisible Hand

Abstract

The invisible hand image is at the centre of contemporary debates about capacities of markets, on which discussion of many other topics in business ethics rests. However, its meaning in Adam Smith's writings remains obscure, particularly the religious associations that were obvious to early readers. He drew on Isaac Newton's theories of divine action and providence, mediated through the moderate Calvinism of the eighteenth century Scottish circles in which he moved. I argue within the context of Smith's general providential account of markets, the invisible hand operates restrain inequality and capital flight, thereby stabilizing the market system. Such an understanding of the invisible hand raises questions for contemporary religious and secular discussions of the capacities of markets in the wake of the global financial crisis.

Achieving Social and Economic Equality by Unifying Business and Ethics: Adam Smith as the Cause of and Cure for the Separation Thesis

“…By taking a very broad view of whose interests must be served and how in order to attain societal‐level welfare, Smith clearly does not take a utilitarian view in WON as some have suggested (see Werhane () for a fuller discussion). Instead, ‘Smith understands that stability depends on adherence to the rules of justice and a not too obscenely unequal distribution of consumption’ (Oslington, , p. 434).…”

The Edifying Discourses of Adam Smith: Focalism, Commerce, and Serving the Common Good

“…He repeatedly affirms divine providence and the wisdom of nature. At the same 8 For studies that find evidence of conventional eighteenth-century Presbyterian theology and British natural theology in Smith see Viner (1927); Kleer (2000); Hill (2001); Alvey (2004); Oslington (2011;2012); Van der Kooi and Ballor (2020). For studies that read Smith as a religious skeptic of some kind see Minnowitz (1993); Kennedy (2011); Rasmussen (2017).…”

“…More conventional theological readings are quite plausible (Kleer 2000;Hill 2001;Oslington 2011;Viner 1927;1977). But one might also sustain an allegorical-theological reading of Smith and come to similar interpretations (Klein 2012, 213-39;Klein, Matson, and Doran 2018).…”

The Christian Body at Work

“…In addition, various theological approaches address issues related to contemporary workplaces via the notion of the economy, and related concepts, such as capitalism and globalization (e.g., Cox 2016, Hill 2001, Murtola 2012, Nixon 2007, Oslington 2012, Rich 2006, Schneider 2007, Schwarzkopf 2012 or the notion of money (see, e.g. Goodchild 2009).…”