The Force of Globalization - The Invisibile Hand of Adam Smith

On 1776, the father of modern economy, Adam Smith promoting the laissez faire economy system, advocate the free open market system by far the most effective way to ensure, regulate and sustain the stability of the economy. The idea of "invisible hand" within the laissez faire market, which its force originate from the sheer will of individual inside the market to strive and act for self-interest, will automatically steer the market instability back to its stable state. Yet, the theory has been debated many centuries. Controversies had been raise by many new-borned economist after Adam smith age, such as Karl Max, John Struat Mill, David Recardo, Parson Malthus, John Maynard Keynes and Milton Friedman. Among many controversies that raised since 300 years ago, one issue that has been always be on the heat debate table is the government role in the free market system. The arguement of, "how can the market regulated and provide neccesary safety net without the government intervention?". From the market boom and burst since the golden age before War World I, post World War I, 1930s financial crush, Post War World II, 1970s oil crisis, 1989 recession, 1998 Asian Economy Epidemic, DotCOM burst on 2000s and the recent financial crisis originated by the "creative destruction" of financial instrumentations; many of those incident had provided anecdoctel evident fraud and rocketeering are the main issue of financial crisis to happen. Some participant that using the "loopholes" in the free market had reap adnormal high profit from the market system in exchange to putting a timer boom in the system. Therefore, government and politician to win vote, had taking such issue to interven the free market system. Protectionism, anti dumping, anti trust act become prevail in our new economy system. Yet, those intervention did not do much good to the economy, instead impair the economy growth. Especially in today globalization world that the system itself is made by the Adam Smith's invisible hand, liberal market need to be sustain. For nation that resist the invisible will jeapordize not only its own domestic economy but also its counter trading partners - other nations. Japan is the best exampler by far how deteriorating the impact of government intervention toward it economy growth. The globalization economy system is not perfect by its past performance, yet, the up and down of the market is the a nature of the economy made of. We shall not resist but to accept the nature of the economy by understand the economy, not try to change it. How can we fight the hand that is invisible? It is like fighting the gravity!