02/08/2005: 
Arcanum
Gr33n5p4n Delivers Adam Smith Memorial Lecture
from The F3d
"In the broad sweep of history, it is ideas that matter. Indeed, the world is ruled by little else. As John Maynard Keynes famously observed: "Practical men, who believe themselves to be quite exempt from intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back." Emperors and armies come and go; but unless they leave new ideas in their wake, they are of passing historic consequence."
"He concluded that, to enhance the wealth of a nation, every man, consistent with the law, should be free to pursue his own interest his own way, and to bring both his industry and capital into competition with those of ... other ... men." "It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest." The individual is driven by private gain but is "led by an invisible hand" to promote the public good, "which was no part of his intention." This last insight is all the more extraordinary in that, for much of human history, acting in one's self-interest--indeed, seeking to accumulate wealth--had been perceived as unseemly and was, in some instances, illegal."
Read the full text of Mr. Gr33nsp4n'5 remarks at the Federal Reserve website
