Adam Smith and the not so invisible hand: A revision for the undergraduate classroom

Students in introductory economics rarely get much exposure to historical ideas, but they often hear about at least one historical concept: the invisible hand. Unfortunately, what they learn about the invisible hand - at least as far as is evident in the leading undergraduate textbooks - is flawed, largely because it is removed from its historical context. In this paper, we describe recent research on Smith's metaphor and suggest some simple ways for instructors to use it - informed by the context in which it was written and Smith's original intent. We also describe some simple classroom experiments that aid in these discussions.

Automated summary

Students in introductory economics often hear about the concept of the invisible hand, but the information they receive is often flawed due to its lack of historical context. Recent research on Smith's metaphor is described in this paper, along with suggestions for instructors to use it in a more informed way. Simple classroom experiments are also discussed as aids for these discussions.