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By Michael White | January 21st 2009 11:35 PM | 20 comments | Print | E-mail | Track Comments
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About Michael White

Welcome to Adaptive Complexity, where I write about genomics, systems biology, evolution, and the connection between science and literature, government, and society.

I'm a biochemist


... Full Bio

Charles Darwin often gets lumped together with Karl Marx in an effort to ascribe the ills of the 20th century to Darwin's ideas about evolution.

But science writer Matt Ridley explains why Darwin's ideas are closer to Adam Smith's than they are to Marx's. He argues that selection can account for the appearance of design not just in biology, but also in the economy and technology. And in fact, the idea of natural selection is an intellectual decendant of Adam Smith's invisible hand:

Locke and Newton begat Hume and Voltaire who begat Hutcheson and Smith who begat Malthus and Ricardo who begat Darwin and Wallace...Where Darwin defenestrated God, Smith had defenestrated government.

Of course in today's society, this lineage frequently gets mixed up:

In the American South and Midwest, where Smith’s individualist, libertarian, small-government philosophy is all the rage, Darwin is reviled for his contradiction of creation. Yet if the market needs no central planner, why should life need an intelligent designer? Conversely, in the average European biology laboratory you will find fervent believers in the individualist, emergent, decentralised properties of genomes who prefer dirigiste determinism to bring order to the economy.

If you doubt the accuracy of Ridley's claim, check out the 'About us' page of one of the major players in the anti-evolution movement:

The Institute discovers and promotes ideas in the common sense tradition of representative government, the free market and individual liberty.

Contrast their free-market principles with their claims about life's complexity:

The theory of intelligent design holds that certain features of the universe and of living things are best explained by an intelligent cause, not an undirected process such as natural selection.


Nothing tastes better than irony.

Comments

Steve Davis's picture
Those examples of conflicting attitudes are interesting and worth highlighting, but if Ridley is proposing that there is an analogy between an ecology and an economy then the analogy is a poor one.  It's worse than poor, its misleading. It fails because if governments were to totally deregulate overnight, remove all central planning, the economy would collapse within a week. Sorry, let me rephrase that. Economic activity of the type we expect would collapse within a week. Ridley is not the first to make this mistake, even the late great Stephen Jay Gould fell into the trap. The fact that Darwin might have been influenced by Smith does not make Smith correct, even though Darwin was as close to all-knowing as we are ever likely to see in a biologist.

adaptivecomplexity's picture
You're certainly right that you can only take the analogy so far. The similarities between the modern-day sciences of evolutionary biology and economics are are more striking when you look at more recent research on self-organizing systems that that applies to both biology and economics. Game theory is another area where there are similarities; a development that took place long after Smith and Darwin.

jtwitten's picture
if governments were to totally deregulate overnight, remove all central
planning . . . Economic activity of the type we expect would collapse
within a week.

Actually, some current economic research, both theoretical and empirical, indicates that, while state regulation and legal formalism (usually) facilitates economic exchange, recognizable economic activity does occur in anarchy.  The system will have to change to the new conditions, but economic collapse is not as dramatic overall as one might expect.

Steve, I hope you don't object to the ellipsis.  I believe I kept your meaning intact.

Another similarity between them is the plethora of experiential/anecdotal evidence that they pile in their book. I guess this is more of a stylistic similarity, but what I love about Darwin & Smith is that they truly saw their theory manifested everywhere, particularly in the most mundane aspects of life. The way that Darwin opens w/dog-breeding is so similar to how Smith opens w/pin manufacturing. & then both the authors stick in the real world, going from one thing to another seemingly unrelated thing. You can really see how their theories grew organically out of their observations in the world. They weren't reacting to ivory tower academic debates, they were only concerned w/what they saw right in front of them.

adaptivecomplexity's picture
You can really see how their theories grew organically out of their observations in the world.

They both did an impressive job supporting their ideas with multiple lines of independent evidence.

Steve Davis's picture
But there was one major difference between the two. Darwin was right, Smith was wrong. They both saw harmony or balance growing out of natural systems, but the natural aspect of Smith's economy was an illusion. Without government intervention there's economic chaos. That's the reason we tolerate them.

Steve Davis's picture
I've just woken up to the anti-evolutionists' affection for free market theory. It's Adam Smith's invisible hand that they love. Which just about sums up the value of Smith's contribution to humanity. Or perhaps that's a bit tough seeing we discussed just a few days ago that we are all products of our particular era. Do I have to include Smith in that? 

rholley's picture
From "What you blog is remembered by your enemies, forgotten by your friends":
But the candidate wasn't listening. He'd already made up his mind about what I thought of Ken Clarke, and nothing was going to change it.

I'm too sessile to be called a bull, but one thing that is a red rag to me is people telling me what I think.  This has vexed me since my schooldays, when in addition to being told off for my behaviour, the schoolmistress would accuse me of motivations that I was too callow even to have thought of.  So when you say
I've just woken up to the anti-evolutionists' affection for free market theory.

how can you make "4" when you don't have direct knowledge of the "2 + 2"?

Smith believed that the gov't had a role in enforcing laws, and creating a stable & predictable society. There's not really an analogy to this in evolution, which doesn't require man-made laws to thrive. Perhaps the closet analogy Smith made is in our natural propensity to trade; although I think that had Smith been more of a biologist, he would've seen the natural fruits of division of labor in bee hives and ant colonies in addition to in human endeavors.

Certainly you miss something when compare 2 of the most influential writers in Western history on the basis on one being "right" and the other being "wrong".

Steve Davis's picture
Influential does not equate with "right." Smith's greatest contribution to Western culture was his metaphor of "the invisible hand." Without that metaphor he would have sunk into obscurity. But how useful is it? The invisible hand was believed to bring harmony to the economy, so why the need for government? He cannot have it both ways, and the result of this contradiction is that his supporters have to this day wanted to have it both ways. They have wanted the invisible hand to give them economic power, then they have wanted government to protect that power. And it's worked. For them. We see that right now where governments are bailing out banks while letting borrowers sink. Is Adam Smith to blame? I think so.

Adam Smith mentions the invisible hand once in the Wealth of Nations, somewhere in the middle. Summarizing Smith's work as simply "the invisible hand" is like summarizing Darwin as "evolution". Similar ideas had been proposed before, particularly in the case Darwin, but what made both of the authors so influential is that they proposed underlying mechanisms behind their theses. It's not just "evolution", it's evolution by means of natural selection, by adaptation, speciation, by means of sexual selection, etc. Likewise underlying Smith's "the invisible hand" was the means of increasing wealth through the division of labor, a separation of inherent value from price, an analysis of different types of value, comparisons of different types of economies (eg, coastal vs landlocked towns; agriculture vs. manufactured goods), a limited but necessary role of gov't, & the benefits of self-interest. "evolution" or "the invisible hand" may be the takeaway message, but it's impossible to talk intelligently about those ideas without reference to the underlying mechanisms, just as it's impossible to talk intelligently about any thesis without considering whether there is evidence to support it.

With regard to the current gov't bailouts, corporations will say anything to stay afloat. One day Microsoft is pro-capitalism, the next day they're filing an anti-trust case against their competitors. Even Smith warned of this, when he said not to confuse his message with the words of corrupt ship traders who supported a form of protectionist mercantilism in order to stay afloat at the harm of everyone else. But that's just common sense. What's best for one company or person isn't always best for everyone. I'd love to get lots of money from the gov't as well, & spin my request as a "capitalism plus the needs of kerrjac". I mean, GM is a multi-billion corporation that is dying a painful death while Adam Smith was a hugely influential academic. I wouldn't get their messages confused.

Hank's picture
Summarizing Smith's work as simply "the invisible hand" is like summarizing Darwin as "evolution".

Errr, evolution (by natural selection, obviously, since evolution existed before him) has been called 'the greatest idea anyone ever had' so I think that would be an excellent summation of Darwin.

The idea of evolution had been floating around before Darwin. Lamarck had proposed his own version of it before Darwin, and Charles Lyell very strongly hinted at it in his work on rock formations. But Darwin ended up getting the credit - and rightly so - because of his discussion of the mechanisms by which it took place. Creationists often attack "evolution", but how often do they rail about evolution by means of natural selection, sexual selection, speciation, etc? I'd argue that simply the idea of "evolution" is relatively hollow & useless without reference to Darwin's arguments about the means by which it takes place.

But I guess my point - sorry to post so much - is that it's analogous to Adam Smith.

Steve Davis's picture
Smith might have mentioned the invisible hand only once, but it's what he's remembered for. What we should be remembering about Smith is that the whole thrust of his economic theory was that unfettered self-interest is the key to economic harmony and progress. As I've already noted, we can see the results of that quaint idea in the unemployment lines and soup kitchens right now. But that's OK, because the supporters of Smithian economics are doing very well.

I'm afraid I don't follow your logic from Smith to unemployment today. Certainly there are a lot of confounds in the model Smith->Unemployment in 2009 grew over the past couple of years. Smith isn't the quintessential reference point for forming US political/economic policy (at least, not in the same way that Marx was for Soviet Russia), so how can you judge his ideas by the current status of our economy? And even if somehow you could, then what would you use as your reference points? From the 1770's to today, the world has seen tremendous unprecedented growth in wealth. From 2007-2009, there hasn't been as much growth. From 1929-1933 the world's wealth shrunk, but I suspect that it was still better off than in the 1770's. And once again Smith never proposed "unfettered" self-interest.

Steve Davis's picture
I'm afraid I don't follow your logic from Smith to unemployment today.  How about all those Wall St traders and bank CEOs walking about wearing Adam Smith tie-pins? They just luv 'im! But I do like your idea of fettered self-interest. I'm a bit far away, how about you put that one around Wall St and a few bank boardrooms and we'll see how it floats.

Steve Davis's picture
I've just woken up to the anti-evolutionists' affection for free market theory.

There's no need to be so prickly Robert, the remark was obviously a generalisation. If you wish to exclude yourself from the anti-evolutionist invisible hand loving free market theorists group, that's fine.

rholley's picture
Sorry, I must have been in sea-urchin mode!

I read the Ridley article some days ago, and have been mulling over it ever since.  I always enjoyed reading his columns in the Telegraph, and the insights they gave into the natural world.  He certainly came across then and now as a free-market believer.  But perhaps both he and the anti-evolutionist free-marketeers owe more to Calvin Coolidge than to Adam Smith.  Anyway, I think rather that the "invisible hand" sounds more FDR-like.  As for his
Darwin defenestrated God

I am reminded of the writing on the wall above the gents stalls in one of our student halls:
Nietzsche: God is dead.
God: Nietzsche is dead.

adaptivecomplexity's picture
I wasn't completely persuaded by Ridley's piece either - I find that later developments in both economics and evolutionary biology have more parallels than natural selection and Adam Smith's ideas.

But I thought it was interesting that Ridley noted Darwin's intellectual debt to Adam Smith and his intellectual descendants, in light of how often Marx is tied to Darwin.  The ideas of Smith and Darwin may not be analogous, but the impact of Smith&Ricardo & Malthus on Darwin was real.

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