Evergreen Reporter

Modern economics traces its roots back to the 18th-century ideas of Adam Smith, particularly those outlined in "The Wealth of Nations." Despite using the term "the invisible hand" only once in this economic treatise, Smith's metaphor has become synonymous with the notion that pursuing profit inherently benefits society and that markets are somehow guided by this principle.

Oren Cass, founder and chief economist at American Compass, challenges this interpretation. In a recent podcast, he argues that Smith's concept has been distorted over time. According to Cass, the original idea was not about blind faith in markets but rather ensuring alignment between private profit and public interest.

Cass suggests that the misinterpretation of "the invisible hand" has led to an unfounded belief in market mechanisms without considering their potential misalignment with societal goals.