{"id":1100,"date":"2018-02-03T04:49:09","date_gmt":"2018-02-03T04:49:09","guid":{"rendered":"https:\/\/cryptorepublic.app\/?p=1100"},"modified":"2018-02-03T04:49:09","modified_gmt":"2018-02-03T04:49:09","slug":"how-to-construct-a-new-invisible-hand","status":"publish","type":"post","link":"https:\/\/cryptorepublic.app\/?p=1100","title":{"rendered":"How to Construct a New Invisible Hand"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbLambert here: Funny, I\u2019ve just been thinking about how Bernard Mandeville, who wrote The Fable of the Bees \u2014 the moral of which is that \u201cthe pursuit of self-interest robustly benefits the common good,\u201d just as Wilson puts it \u2014 actually knows nothing about bees, and so would do very well in today\u2019s neoliberal economics departments.\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:25&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbIn a previous essay, I announced a new concept of the invisible hand to replace the old and erroneous idea that the pursuit of self-interest robustly benefits the common good. The new version is based on examples of the invisible hand that exist in nature, such as cells that benefit multi-cellular organisms and social insects that benefit their colonies. These lower-level units don\u2019t have the welfare of the higher-level units in mind. They don\u2019t even have minds in the human sense of the word. Instead, they exhibit behaviors that have been winnowed by higher-level selection to benefit the common good. Higher-level selection is the invisible hand.\u00bb][tm_spacer size=\u00bblg:63&#8243;][vc_row_inner][vc_column_inner width=\u00bb3\/12&#8243;][tm_image image=\u00bb875&#8243;][tm_spacer size=\u00bbsm:30&#8243;][\/vc_column_inner][vc_column_inner width=\u00bb9\/12&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbUse psychological pricing methods.\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbAbsorbing this fact leads to a robust conclusion about the design of our own societies. We must learn to function in two capacities: 1) As designers of social and economic systems; and 2) as participants in the systems that we design. As participants, we need not have the welfare of the whole system in mind, in classic invisible hand fashion. But as design\u00aders, we must. The invisible hand must be constructed, which would be a contra\u00addiction of terms according to the old concept.\u00bb][tm_spacer size=\u00bbxs:30;lg:35&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbYet, this does not mean that the invisible hand must be constructed by centralized plan\u00adning, the main alternative to laissez faire economic policies that is typically imagined. Instead, the design process needs to be evolutionary, iterative, and collaborative, resulting in mechanisms that work like the invisible hand, even though they never could have arisen on their own. This constitutes a middle path between laissez faire and centralized planning that could be a breakthrough in solving the problems of our age.\u00bb][\/vc_column_inner][\/vc_row_inner][tm_spacer size=\u00bbxs:30;lg:52&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbI have stated the new concept of the invisible hand in terms of evolution, which provides the strongest and most general theoretical foundation that one could ask for. However, the concept has also been formulated by others from different perspectives.\u00bb][tm_spacer size=\u00bbxs:30;lg:68&#8243;][vc_row_inner][vc_column_inner offset=\u00bbvc_col-md-6&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbDemonstrate the differences\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbThe root of the Invisible Hand\u2019s current failure is that nature and future generations have neither money, votes or property rights. As a result, their needs are completely ig\u00adnored by the pricing pro\u00adcess and (absent government regulation) by all economic decision-makers. It is no won\u00adder that nature is trashed and future generations forsaken for the sake of short-term gain.\u00bb][tm_spacer size=\u00bbsm:30;lg:68&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbOffer a money-back guarantee\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbThe remedy to both crises \u2014 destruction of nature and concentration of wealth \u2014 is to create new forms of property that represent and benefit nature, future generations and all of us together as co-inheritors of common wealth. \u00ab][tm_spacer size=\u00bbsm:30;lg:68&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbTest your offer and price, and be creative.\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbThis is where system design comes in. If markets as they now exist aren\u2019t sufficiently self-regulating, and we don\u2019t want centralized control by government, then changing the mix of property rights is the only other imaginable solution.\u00bb][\/vc_column_inner][vc_column_inner offset=\u00bbvc_col-md-6&#8243;][tm_spacer size=\u00bbsm:40&#8243;][tm_image full_wide=\u00bb1&#8243; image=\u00bb876&#8243;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>We consider all the drivers of change \u2013 from the ground up and we\u2019ll motivate and support you to make the change.<\/p>\n","protected":false},"author":1,"featured_media":1091,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[25,27,28],"class_list":["post-1100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hot-updates","tag-business","tag-finance","tag-industry"],"views":241,"_links":{"self":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts\/1100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1100"}],"version-history":[{"count":0,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts\/1100\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/media\/1091"}],"wp:attachment":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}