Abstract

Paul Oslington

Divine Action, Providence and Adam Smith's Invisible Hand

Recent sustained attention the background of Adam Smith's invisible hand has not resolved its meaning. In particular the status of the older dominant interpretation that the hand is God's remains unclear.  This paper argues that a more nuanced understanding of divine action, drawing on Isaac Newton's understanding of special and general providence is the key to understanding Smith's invisible hand.  The invisible hand is the special providential hand of God, which works to maintain the stability of the system, for instance by restraining inequality and keeping capital at home.  Viewing the hand in this way clarifies its relationship to Smith larger argument about the unintended consequences of self-interested human action in a free economy.