Mandeville's paradox explained

Mandeville's paradox is named after Bernard Mandeville (1670–1733), who posits that actions which may be qualified as vicious with regard to individuals have benefits for society as a whole. This is alluded to in the subtitle of his most famous work, . He states that "Fraud, Luxury, and Pride must live; Whilst we the Benefits receive."[1]

The philosopher and economist Adam Smith opposes this (although he defends a moderated version of this line of thought in his theory of the invisible hand), since Mandeville fails, in his opinion, to distinguish between vice and virtue.[2]

References

  1. Book: Mandeville, Bernard. The Fable of the Bees. 1714. ‘The Moral’. Bernard Mandeville.
  2. Book: Smith, Adam. The Theory of Moral Sentiments. 1759. Part VII, Section II, Chapter 4 (‘Of licentious systems’). Adam Smith.