In my Wall Avenue Journal op/ed on the three Nobel Prize winners, “A Nobel Prize in Economics for the ‘Inclusive’ Free Market,” revealed on line on the afternoon of the award and in print the subsequent day, I wrote:
The Nobelists’ contribution is to put out empirical information on the particular financial establishments that helped or hindered financial progress after which to look at the components that led to these establishments. They level out, as Adam Smith did, that property rights and the rule of legislation are key.
What I didn’t get room to say, given my tight phrase constraint, is that of their e book Why Nations Fail, Daron Acemoglu and James A. Robinson gave quick shrift to Adam Smith. Lookup Smith within the index, and also you’ll discover one reference. Go to that web page and also you’ll see that the reference is to the “invisible hand.” That’s it. No point out of establishments, which is a large a part of An Inquiry into the Nature and Causes of the Wealth of Nations. And there’s no point out of The Wealth of Nations within the 17 pages of References.
I used to be wanting on the blurbs on the entrance of the e book this morning and located this one by Niall Ferguson:
Synthesizing brilliantly the work of theorists from Adam Smith to Douglass North with newer empirical analysis by financial historians, Acemoglu and Robinson have produced a compelling and extremely readable e book.
Acemoglu and Robinson do focus on latest empirical analysis by financial historians. The e book is compelling and extremely readable and their bibliographical essay references various works by Douglass North.
However the authors didn’t point out the work of Adam Smith. I gave above the one point out of Smith that I may discover.
Postscript:
Since writing my op/ed, I got here throughout this piece by Ryan Younger of the Aggressive Enterprise Institute. It’s wonderful.
