One of the best-kept secrets in economics is that there is no case for the invisible hand. After more than a century trying to prove the opposite, economic theorists investigating the matter finally concluded in the 1970s that there is no reason to believe markets are led, as if by an invisible hand, to an optimal equilibrium — or any equilibrium at all.
This has a little less than 3 million views on youtube but to me it’s new. And epic. Economy for the masses.
There is debate whether (the duty to maximize shareholder value) exists, but it is such a dominant perception among directors that it is the practical reality.
Very interesting article. This quote intrigues me. The preemptive thinking that goes into decision making does.