Once in trafic jam i thought that Adam Smith's Invisible Hand and traffic red lights are related and if there would have been red lights in times of Adam Smith he must have given a second thought before endorsing his Invisible hand argument so forcefully.
"So what is Invisible hand of market
“It is not from the benevolence of the butcher, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantages.” "Adam Smith 1776"
So in a sense Adam Smith was saying that individual acting in their self interest achives social optimum and so there is no need of intervention and it is achieved through price and that is invisible hand of market. Price changes to achieve social best.
If that is true then why we need red light. we need because otherwise there will be only jam no social best, we will have social worst. is invisible hand not working? yes it is not working because what we now call tragedy of commons. if every one try to cross at the same time no body can cross and so individual selfishness not leading to social best. We need intervention in the form of redlight. (Can other market also need some kind of redlights)
See the way i have rejected the notion of invisible hand. But if Adam smith would have been alive he will say! oh! see there is no price system to adjust so how caninvisible hand work. is it right that there is no price system working there? give a thought and i will be back.
But mean while one conclusion that we can derive : Economist who belives in Invisible hand argument moves on roads without redlights otherwise how else they can defend their invisible hand argument.