In this blog post, we will examine Adam Smith's view and understanding of the visible hand in relation to the invisible hand and negative externalities.
Although Adam Smith lived in the 18th century, the father of modern economics still has much to teach the world today. Smith's world famous book Wealth of Nations is arguably the most important piece on economics in history. It greatly influenced other scholars, thinkers, and eventually policymakers away from the then-dominant global policy of mercantilism toward freer trade.
The practice of price gouging has become a concern in the wake of the COVID-19 pandemic. Many consumers are stockpiling essential goods ranging from food, medical supplies, to even toilet paper. A natural consequence of a sharp influx in demand is a substantially larger price tag, falling within the parameters of the immutable Law of Supply and Demand.
The world has been thrown into chaos over the course of the past several weeks with the rapid spread of the Coronavirus (COVID-19). The virus has spread from China to some of the most remote islands on Earth. Since it has begun to spread, markets have been extremely volatile and many businesses have been forced to shut down, both voluntarily and by government mandate.
International Organizations are assumed to possess international legal personalities that allow them to operate and represent themselves globally without the need for state authority.