When Adam Smith talked about an invisible hand, he was assuming that the basic infrastructure of society was in place - or that market participants would provide the infrastructure to maintain a peaceful market through rational self-interest. What history repeatedly schools us on that is that people are not rational, except secondarily. A “free” market requires rules of behavior. IMO, Ostrom’s work regarding the “commons” proved this. The problem arises, often, in balancing rules and freedom, but complete freedom doesn’t work. Some market actor WILL take advantage - happens every time. Too many rules are also stifling - or rules written by the wrong set of participants. Like a king - not a good person to write the rules, as they are disconnected from the market.
