Tuesday, February 5, 2013

Darwin, the first economist.

Adam Smith’s work such as “The Wealth of Nations”  the invisible hand theory as a system that allows markets free of regulation to increase the wealth of a nation as a whole. It does this through channeling people’s self-interest as a way to indirectly help the community.
Smith’s description of how the market removes inefficiencies draws to mind Darwin’s theory of natural selection. The theory of natural selection works is based on the idea that traits and behaviors that insure the reproductive success of an organism will continue.
In this same vein of thought Smith’s theories of market innovation is very similar to Darwins. Smith promotes the idea that market innovations such as a design improvement that reduces the cost of the product benefits the seller of said improved product while the competition are forced to adapt or die out. This “natural selection” of the market can be almost directly correlated with the development of attributes that would help organisms live and continue to reproduce.
                This would seem to make Darwin the first economist but on a more general level. His theory of natural selection doesn't necessarily follow all the pitfalls of an economy but regardless the comparison can be made and seen. 

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