WHO IS FOOLING WHO?
"Adam’s Smith’s “invisible hand” of the marketplace is perhaps the single most captivating metaphor in all of economics. The idea that all of society can be made better off by the self-interested behavior of its constituents was revolutionary for its time, and it undergirds free-market philosophy to this day.
Nobel-prize winning economists, George Akerlof and Robert Shiller take up this mantle in their latest book, "Phishing for Phools: The Economics of Manipulation and Deception". The central argument of the book is that though free markets bring wonderful bounties to societies that embrace them, they also yield negative consequences that can be avoided with intelligent modifications. They write:
Calling it "phishing" is imaginative and will sell their book, but Smith wrote about it in detail in the 18th century. Misinterpreting Smith's use of the metaphor of an "invisible hand" is the real "phishing".