I Pencil: A product of the mixed economy
The excellent John Quiggan puts up a response to Leonard Read’s I, Pencil.
I, Pencil is an extensive piece of invisible hand propaganda that by directing you only to the vastly complex network of market resources mobilized in creating pencils, misdirects you away from the equally complex network of government resources that enable those market resources.
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Absolutely a rubbish usage of the "invisible hand" doctrine by Libertarians. I simply urge these Lib-champs to kindly read Wealth of Nations thoroughly. Adam Smith wrote NOTHING about Free-markets & Capitalism, he NEVER used this phrase in the sense as being exploited today. He meant to signify it as 'God' as evident in his previous 'Theory of Moral Sentiments'. He rather proposed a STRONG government in his Book VI.
This is what happens when ideologues jump without reading the so-called foundation of Laissez faire Economics.
The criticism of the article 'I Pencil' is excellent. The complex network of Government resources, both: Natural resources & support resources(Eg. Loans to poor, Marketing channels, Agro-sector aids, many more)- in reference to Developing nations, is always overlooked as if there exists no need for it.
The thriving Private sector(the Entrepreneurs at the local levels) so dearly need strong Government backing. A very successful example of that is 'Amul' of India. One may google it up! Regards.
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