adam smith

Adam Smith and the Invisible Hand

Adam Smith, who considered as the father of modern economics, was born on June 5, 1723 and died on July 17, 1790 in Scotland. He was well-known as not the only pioneer of a political economist but also a moral philosopher. There is no doubt that one of the most influential Smith’s ideas was that explaining how rational self-interest in a free-market economy leads to economic well-being. So, this played a significant role to create the root of the capitalist system. The idea of Laissez-Faire (Let it be) is the key consideration of thought to determine the system of capitalism. Smith argued that when one earns money for by himself he also benefits unintentionally society as a whole since earning income necessitates producing something valuable. According to Adam Smith, “the interests of the businessman who intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end that was no part of his intention.” By pursuing his interest, he frequently promotes that of the society more effectually than when he intends to promote it” (Offer, 2012). We can understand the basic concept of an “invisible hand” from the above passages in The Wealth of Nations. Also, we should emphasize its relation to capitalism and the role of the government in the economy and a certain set of propositions to get the idea deeply.

To begin with, people can control to enhance their incomes when ones are left free to chase their own self-interest by employing the resources, as an invisible hand, to maximize the not only the world’s income but also the future growth of that income through their interaction with other self-interested individuals. Secondly, competition plays a fundamental role to ensure the framework that is essential for the outcomes of proposition (1) to succeed the necessity by corporate and human. The reason is that individuals should perform their tasks in a proper way in order not to lose market sharing since not only managing resources but also providing the best services are all important in terms of people. That is why, competition should be allowed across national boundaries at a considerable level of the goods, services and factors of production as well. Furthermore, the government should not play a major role in the market. It means that they have not to be intervened to promote the self-interested individuals in terms of utilizing resources in a positive way. So, governments minimize the restrictions on the some certain fields such as production, trading, selling and ultimate consumption of goods and services. To prevalence the invisible hand, government exist only the national defense, administration of justice and erect public works and public institutions. In other words, the government should preserve the individuals in their property of those sources and also preserve them for the pleasure of the fruits of prospering utilization of those resources. Therefore, “the government must prohibit slavery, murder, robbery and fraud, but it also must prohibit confiscation of both privately owned capital as well as the profits from capital investments” (Meeropol, 2004).

Last, but not least, according to Smith, when letting the market alone there are competitive pressure and profit rewards to procure encouragements to be excellent. It also can be some punishments for the losses, so private decision- making unit is more efficient that the government decision-makers since it is subjected to the invisible hand (Meeropol, 2004).

We can say that Smith’s metaphor of the invisible hand is arguably the most significant notion in modern social thought. One’s natural instincts channeled by institutions and self-command in terms of the interpretation of Smith’s invisible hand. Therefore, persuasion, sympathy, barter, truck and so forth are the ultimate instincts to the people to get better conditions. These can be invisible passions which guide people, not only in Moral Sentiments but also Wealth of Nation. Although self-interest does not work in isolation since it is dominant and required passion in the economic field. Human instincts are capable of producing not only private benefits but, in most cases, social benefits that are not intended when they are allowed to operate within incentive-compatible environments. Thus, one does not need to start from a virtuous motive such as favor to produce something valuable for society. In a helpful institution, spread out actions leads to an order that gives people growth and freedom. Smith says that there is not exist any political economy system that succeed it. Hence, he claims that a variety of institutions and a series of mixed market systems can be counted as an exhibition of rich industrial democracies. Adam Smith was not pessimistic that the invisible hand instincts would inherently induce progress in the course of events since he was a pragmatic rather than an ideologist. We can see these thoughts from his mentioning the more comprehensive moral and psychological perspectives. In other words, the invisible hand does not form an explanation of selfish individualism. According to Smith’s view, development necessitates that private and public institutions incite moral development that markets and society fail to achieve their potential. “Smith debunked the “greed is good” philosophy, ridiculed the notion that wealth alone could provide happiness, and built an elaborate psychological foundation for behavior that goes well beyond egoism” (Jonathan, 2007).

Moreover, Table 1 shows the modern view of the invisible hand. It means that this shortage will be eliminated by an invisible hand, and there will be an equilibrium in the market again. This demonstrates that one of the most important assertions is about maximizing economic wellbeing of a human. For instance, the market for products plays a major role to determine the production and consumption since not only the producer but also consumer consider calculating their cost and benefits before the actions. Hence, we know that producer desire to propose an additional good for sale if it benefits to them and consumer wish to obtain that good at a minimum amount. The market equilibrium will be occurred at the point of the cost of last good equals to its value. An invisible hand comes into existence in this case by ensuring buyers and sellers benefits. In the light of these circumstances, a free-market economy leads to economic well-being.

Table 1: Demand and Supply Equilibrium

Supply & Demand

As a result, we can say that human beings maintain the material necessities of life by producing and distributing. According to Smith, this process associated with capitalism since one of the strongest human motivation is to accumulate material wealth. When we consider the today contemporary world, we can say that there is no such a pure Laissez-Faire Capitalist economic system. However, we can give some countries that can be considered closest ones such as United States, Canada, Switzerland, and United Kingdom. In the light of these circumstances, without any doubt, the free-market economy has a critical role to direct economic well-being; therefore, it is significant to take into consideration the government decision and action to conduct. We can easily say that when one of the assumptions is not conducting enough that reflects other ones; therefore, there is significance relationship among them. All in all, in order to understand the fundamental concept of an invisible hand; we emphasized its relation to capitalism and the role of the government in the economy and a certain set of propositions to get the idea deeply.


Meeropol, Michael. (2004). “Another Distortion of Adam Smith: The Case of the Invisible Hand,”

University of Massachusetts Amherst, Working Paper Series, No: 79

Offer, Avner. (2012). “Self-Interest, Sympathy, and the Invisible Hand: from Adan Smith to Market

Liberalism,” University of Oxford, Discussion Papers in Economic and Social History, No: 101

Wight, Jonathan. (2007). “The Treatment of Smith’s Invisible Hand,” University of Richmond, Heldref

Publications, Journal of Economic Education, pp. 341-358

The 33

The 33

Şili’de 2010 yılında meydana gelen ve 33 madencinin 69 gün yerin altında yaşamasına sebep olan maden kazasını anlatan film son zamanlarda izledigim en etkileyici filmlerden biriydi. Film biter bitmez; Türkiye’deki madencilik kazalarına bir goz atmak istedim. Asagidaki liste bitmek bilmiyor. Kelimeler kifayetsiz kalıyor… HATALARIMIZDAN DERS ALMALIYIZ…

7 Mart 1983 tarihinde Zonguldak’ın Armutçuk beldesindeki taş kömürü ocağında meydana gelen grizu patlamasında 103 işçi yaşamını yitirmiştir.

7 Şubat 1990 tarihinde Amasya’da, Yeni Çeltek Kömür İşletmesi’ne ait maden ocağında meydana gelen grizu patlamasında 3 işçi yanarak 65 işçi ise göçük altında kalarak hayatını kaybetmiştir.

3 Mart 1992 tarihinde Zonguldak’ın Kozlu ilçesindeki taş kömürü ocağında meydana gelen zincirleme patlamalarda 263 madenci yaşamını yitirmiştir.

26 Mart 1995 tarihinde Yozgat’ın Sorgun ilçesinde, Matsan Madencilik Şirketi’ne ait kömür ocağında grizu patlaması sebebiyle meydana gelen kazada 38 kişi göçük altına kalarak can vermiştir.

22 Kasım 2003 tarihinde Karaman’ın Ermenek ilçesinde, özel bir firmanın işlettiği kömür ocağında grizu patlaması sebebiyle 10 işçi yaşamını yitirmiştir.

10 Aralık 2009 tarihinde Bursa’nın Mustafakemalpaşa ilçesindeki maden ocağında, 19 işçi grizu patlaması ile oluşan göçük sonucunda hayatını kaybetmiştir.

17 Mayıs 2010 tarihinde Zonguldak’ta, Karadon Taşkömürü İşletme Müessesesi’nin işlettiği kömür madeninde grizu patlaması ve oluşan göçükler sebebiyle 30 kişi hayatını kaybetmiştir.

23 Şubat 2010 tarihinde Balıkesir’in Dursunbey ilçesine bağlı Odaköy’de, toplam 47 kişinin çalıştığı maden ocağında meydana gelen grizu patlamasında 17 kişi ölürken 30 kişide yaralanmıştır.

13 Mayıs 2014’te Manisa’nın Soma ilçesinde bir maden ocağında çıkan yangın sonucu 301 işçi hayatını kaybetti, en az 88 işçi de yaralandı. Facia, Türkiye Cumhuriyeti tarihinin en çok can kaybı ile sonuçlanan iş ve madencilik kazası olarak kayıtlara geçti.

28 Ekim 2014’de Karaman’ın Ermenek ilçesine bağlı Pamuklu köyü yakınlarında bir kömür madeninde meydana gelen su baskını sonucu 18 işçinin mahsur kalarak hayatını kaybetti.





Don’t give up on your dream!!! Say it yourself, It’s not over! Until I WIN!!

digital media

What do you think about digital media?

Do you think digital media will have a positive or negative effect on us?

Without any doubt that digital media has become an indispensable part of human life all around the world in recent years which is why there has been an incredible advancement in technology lately. The most crucial point is that how can we use effectively? Even though there are adverse effects of using digital media such as unhealthy lifestyle, destructive behavior and so on, a lot of people choose to use them because of the saving time, communication, and educational facilities.

To begin with, saving time is crucial in the modern societies because we don’t have enough time for every small thing such as paying the bills. We have to pay sorts of bills which include electricity, phone, Internet, school and so on. If we use the Internet to pay all bills, it cannot take a long time. Secondly, communication is an inseparable part of human life. For this reason, no matter  we live so far away, we can communicate easily whenever we want thanks to Skype, Facebook, WhatsApp and so on. Also, this way is extremely cheap. Most importantly, educational facilities have increased significantly all around the globe with digital media since we can find all kinds of information. Thus, if we know how to use properly digital media, it can be extremely useful.

However, digital media also has its negative side. Firstly, digital media influences people’s health in adverse ways because we are exposed to radiation. In other words, when we use digital media, we are in the electromagnetic field. This is extremely harmful to our healthy. Also, it can because serious visual defects. Another negative side is that we can encounter some contents which involve destructive behaviors such as lying, stealing, smoking and drinking. In addition, we can become an unsocial person if we frequently use it. The main point is that we should consider the negative side carefully.

All in all, it is a well-known fact that digital media has two sides which are positive and negative. The most important positive sides include saving time, communication, and educational facilities. On the other hand, the most significant negative sides involve unhealthy lifestyle and destructive behavior, but how they affect us depends on our approach to them. If we know to use beneficial ways and reduce negative sides, it can be extremely useful. My advice is that we have to know how to take advantage of digital media.


bulutlarin ustunde

Bir Bilebilsek…

Hayatı çok hızlı koşmayın, nereden geldiğinizi ve nereye gittiğinizi unutmayın.

Hayatın bir yarış değil, her saniyesinin tadı çıkarılması gereken güzel bir yolculuk olduğunu aklınızdan çıkarmayın.

Dün tarih oldu… Yarın bir sır… Bugünün kiymetini bilin.

Can Dündar
mark twain


Philosophy of Karma

Do you believe in Karma which is the theory of ˈwhat goes around comes aroundˈ?

My opinion is that we do not need to believe in deeply as a religious in order to understand it. When we look at the philosophy of Karma we can easily see that if people do something good, something good will happen to people, and vice versa. To my mind, it is not too complicated because it is not an important origin of Karma indeed. Thanks to this philosophy we can keep away from dangers and so on.

I know that most of the people claim that there are countless examples in the daily life which bad people do a bad thing and nothing bad happens to them. On the other hand, good people do good things and nothing good happens to them. According to me, sooner or later, they will be punished or rewarded. What is important to understand is that we have to consider that action is followed by reaction in the life.

In conclusion, as for myself, yes I do believe in karma as you can see the above. The most important reason is that I think one’s actions should come back to you in this life.


Sweatshops Part 2

Are sweatshops really a “ladder out of poverty”?

     To begin with, we can say that sweatshops can be better than other jobs especially in poor countries. According to the study, Powel and Skarbek claim that sweatshop earnings are higher than average income for country which include not only Cambodia also Bangladesh, Nicaragua, Vietnam, Haiti or so on. Also, they are saying that when sweatshop workers get money they spend their income as a locally. This creates additional demands and jobs for other services as well. One of the most important claims which they asserted is that “both workers and employers gain when they voluntarily enter into a labor contract-no matter how low the wages” (2006). We should emphasize that point because we already know that Cambodian people define the sweatshop as a “cherished dream.” This explains that when they voluntarily work they do not care too much working conditions or something like that because they already know other options which are worst. Moreover, most of the sweatshop jobs conduct by multinational firms. It means that these firms pay higher than domestic firms in Third World Country in terms of wages. Also they enhance workers’ lives by rising the demand for labor. (Powell & Skarberk, 2006) According to the reports of World Bank, more than half the population lives on less than $1 per day in most of these countries which are called the sweatshop as a “cherished dream” (2012). According to Zwolinski’ article, he asserts that we should not compare standards among United States or other developed countries because when we see example of Nike’s firm in Jakarta, they are saying even if the wages seems low in terms of developed countries, but they get more than enough when we compare to the local economy. (2007) Another study shows that “one broad measure of economic development is to compare the opportunities of sweatshop workers to the employment options of the previous generation” (Skarbek et al., 2012) That’s why; we should investigate their employment options in these countries. Unfortunately, when we consider their choices we do not find so many which can be desirable such as street vending, agricultural work or so on. Even if they are desirable than sweetshops, it seems that they are not enough option in order to substitute the sweatshops in poor countries. Actually, there can be another option which is really good for them; on the other hand, this needs certain types of “capabilities.” Therefore, they need to improve “intergenerational mobility,” “educational attainment,” and “economic opportunities for women.” In brief, when we analyze their current situation it seems that sweatshop can be counted as a “ladder out of poverty” in the really poor countries.

On the other hand, it does not matter whether or not sweatshops truly are a “ladder out of poverty.” I think that is not extremely important point because we already know how people exploit under the sweatshops. Zwolinski says that “it is wrong to harm people or to violate of their autonomy” (2007). That’s why, how we can talk about when people abuse in terms of exploitative wages, working condition, and so on. For instance, owners of these kinds of companies never supply the legal and required condition for labors. What’s more, labors work more than sixteen hours in a day without any break and most of the workers of sweatshops are underage or women because of vulnerability. We should evaluate moral of people. It is all important in this contemporary world. Some of people claim that when labor standards increase in these poor countries companies do not want build any kind of jobs over there. Yes! Unfortunately, that is undeniable truth. All they want to reduce their cost of factor. They do not care anything about people lives’ because they just want to slaves in order to carry out their careless command. Therefore, even if sweatshop plays an important role to perform economic activity in the market, it is not good for human life. All we know that they need to money in order to survive their life, but this should not be way to do it. It is not quite difficult to answer that sweatshop is whether or not “ladder out of poverty” in the really poor countries. Of course, it helps people in poor countries, but can we refer these things as a help!

All in all, the prediction of another scenario cannot be really difficult but the implementation of that is extremely tough due to hegemony of capitalism. What I mean is that the firms want to maximize their profit as much as ones can; therefore, they do not want to carry out other scenarios. Also, we already know not only the situation of Third World countries but also the condition of sweatshops. It is difficult, then, come to any broadly applicable conclusion about that. In principle, we can only say that the scenario can be less profit more humanist. Hence, the term of sweatshops should define much more humanistic and proper in order to prove behind the truth. I know that most of the people claim that there are countless examples in the daily life which bad people do bad thing and nothing bad happens to them. On the other hand, good people do good things and nothing good happens to them. According to me, sooner or later, they will be punished or rewarded. What is important to understand is that we have to consider that action is followed by reaction in the life.


Kristof, Nicholas. (2009). “Where Sweatshop Are a Dream” Retrieved from

Powell, B., & Skarbek, D. (2006). Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat?. Journal of Labor Research, 27(2), 263-274. Retrieved from 3&vid=1&hid=4108&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=ecn&AN=0863890

Powell, B., & Zwalinski, M. (2011). The Ethical and Economic Case Against Sweatshop Labor: A Critical Assessment. J Bus Ethics, DOI 10.1007/s10551-011-1058-8. Retrieved from

Skarbek, D., Skarbek, E., Skarbek, B., & Skarbek, E. (2012). Sweatshops, Opportunity Costs, and Non-monetary Compensation: Evidence from El Salvador. American Journal Of Economics And Sociology, 71(3), 539-561. Retrieved from

Zwolinski, Matt. (2006). “Sweatshops – Definitions, History, and Morality” Retrieved from


Sweatshops Part 1

Are sweatshops really a “ladder out of poverty”?

It is a well-known fact that the term of sweatshop has become a controversial issue all around the world in recent times. According to the Cambridge Dictionaries, the definition of “sweatshop” is a small factory where workers are paid very little and work many hours under bad conditions” (2015). The term has taken form thanks to the rise of industrialization in the 19th century. Also, we can say that capitalism plays an important role to extend. Furthermore, globalization can be counted another significant reason to enlarge term of sweatshops because we can say that multinational companies want to build their manufacture industry where the cost of factors is cheap. It can be seen such a country where not only the labor rights are extremely low because of lacking legal protection but also the labor-intensive process is really high. Also, Zwolinski states that The United States General Accounting Office defines a sweatshop as “an employer that violates more than one federal or state law governing minimum wage and overtime, child labor, industrial homework, occupational safety and health, workers compensation, or industry regulation.” (2006) After above definitions, we should know that what makes a sweatshop a sweatshop! When we ask this question ourselves we unfortunately encounter some moral issues such as “what moral obligations employers have toward their employees, or what constitutes a fair wage for a day’s work.” We can easily see that the condition of sweatshops is extremely miserable for labors. According to me, this is unacceptable in terms of human rights. On the other side, according to the New York Times Article which is “Where Sweatshops Are a Dream,” the columnist describes the situation which is really unpleasant in Phnom Penh, Cambodia’s people who are searching old plastic cups in order to sell to recyclers about five cents a pound. He asserts that a sweatshop creates an opportunity “as an escalator out of poverty” in the poorest countries. Also, when he talks to the people who are scavenging in the dump want to get a job in factory and they define the sweatshop as a “cherished dream” as well. (Kristof, 2009) Unfortunately, there is quite conflicts between them.

That’s why I want to emphasize both situations which are whether or not sweatshops truly are a “ladder out of poverty.”

Sweatshops Part 2 – 02.12.15


Kristof, Nicholas. (2009). “Where Sweatshop Are a Dream” Retrieved from

Zwolinski, Matt. (2006). “Sweatshops – Definitions, History, and Morality” Retrieved from


Korkularımızdan kurtulmak mümkün müdür ?


Shakespeare benzersiz anlatımıyla nasılda dile getirmiş korkutuğumuz gerçeğini. Ortada böyle bir gerçek olduğunu ve çoğu zaman yüzleştiğimizi kimse inkar edemez sanırsam. Ne kadar acımasız bir hayat yaşıyoruz ki bu denli korkuyla dolu bir yaşam sürmekteyiz anlam verebilmiş değilim doğrusu.

 İnsanların çoğu kaybetmekten korktuğu için, sevmekten korkuyor.

Sevilmekten korkuyor, kendisini sevilmeye layık görmediği için.

Düşünmekten korkuyor, sorumluluk getireceği için.

Konuşmaktan korkuyor, eleştirilmekten korktuğu için.

Duygularını ifade etmekten korkuyor, reddedilmekten korktuğu için.

Yaşlanmaktan korkuyor, gençliğinin kıymetini bilmediği için.

Unutulmaktan korkuyor, dünyaya iyi birşey vermedigi için.

Ve ölmekten korkuyor aslında yaşamayı bilmediği için.


Peki öyleyse; Korkularımızdan kurtulmak mümkün müdür ?

İnsan olarak öyle muhteşem özelliklere sahibiz ki bunların başında şüphesiz düşünme yeteneğimiz gelir. Hayatımızı şekillendirmek için düşüncelerimizden yola çıkmamız gerekir. Eğer hayata olumlu yönünden bakmaya çalışıp, düşüncelerimize o yönde komutlar verirsek o denli pozitif bir yaşam süreriz. Ne zaman ki korkularımız düşüncelerimize yön vermeye başlarsa, işte o zaman bir şeylerin ters gitmeye başlayacağı su götürmez bir gerçektir. Bu yüzden korkularımızı düşünmeyi bir kenara bırakarak elimizden geldiği kadarıyla hayatta var olan güzellikler üzerine düşünmeli ve bu şekilde düşüncelerimize yön vermeye çalışmalıyız ve özelikle de hiç bir zaman eylemlerimizi hata korkusuyla kısıtlamamalıyız.

“Hiç hata yapmayan insan, hiçbir şey yapmayan insandır. Ve hayatta en büyük hata, kendini hatasız sanmaktır!..” Yunus Emre

Bu yüzden korkularınızı bir yana bırakarak sizi esir almasına izin vermeyin ve fazla sorgulamayın bunu yaparsam ne olur, şunu söylersem ne olur diyerek.

Siz siz olun beyninizin yarattığı korku illüzyonlarına kanmayın.


Bugün Başarı İçin Ne Yapabilirsiniz ?

Korkunuza değil, hedefinize odaklanın

Beynin en tehlikeli yanı, “ters çaba” kuralına göre çalıştığı anlardır. Başınıza gelmesinden en çok korktuğunuz şeye odaklanırsanız, beyin onu size çeker, korktuğunuzu başınıza getirir! Buna ters çaba kuralı denir. Bataklıktan çıkmaya çalıştıkça, dibe gömülmeye benzer. Beyin odaklanılan hedef için çalışır, hedef olumsuz olsa bile onu gerçekleştirmek için çalışır! Topluluk önünde konuşma yaparken “acaba heyecanlanacak mıyım” diye düşünürseniz, korkunuz olmasın, heyecanlanacaksınız! Korkunuza değil, konunuza odaklanın. Başınıza gelmesinden korktuğunuz en kötü şeye değil, başınıza gelmesini istediğiniz en iyi şeye odaklanın. Unutmayın kafanızda en çok neyi düşünürseniz, hayatınızda onu çoğaltırsınız.

Ne kadarda güzel anlatmış Mümin Sekman gerçekten doğruluğu olan bir şey kafamızda en ufak bir tereddüt olduğu zaman hedefi vurmamız çok daha zorlaşıyor. Bu bakımdan elimizden gelenin en iyisini, düşünçelerimizi daima pozitif bir şekilde tasarlayarak işe başlarsak başarıyıda o denli yakalımış oluruz. Ne yazık ki bu hiçbir şey yapmayarak sadece olumlu düşünceyle biryerlere gelebileceğimiz anlamınıda taşımıyor tabiki. Biz elimizden gelenin en iyisini yaparken yapmamız gereken hedefimeze odaklanıp daima pozitif düşüncelerle hareket etmemizdir.