26th June 2018
Modern economics begins with Hayek, who made the invisible hand visible
Adam Smith identified the invisible hand but had no idea how it works. People like Marx then went off on a complete tangent using the labour theory of value.
Menger, Jevons and Walras demolished the labour theory of value in the 1860s and 1870s. They were getting close enough but still did not understand how the invisible hand works.
It was only through Hayke’s 1945 paper, The Use of Knowledge in Society that we began to see how the invisible hand actually works. Hayek made the invisible hand visible.
Economics should be dated from 1945. Prior to that it was proto-economics – merely the seed of economics. Without understanding information that informs the “invisible hand”, it is not really possible to be an economist.
(Btw, I was the first to publish Hayek’s paper on the internet).