Ideological bias

The purpose of this chapter is to show the ideological, and therefore limited and partial, view of the “invisible hand,” which is the cornerstone of the mainstream financial economics. This chapter discusses how the “invisible hand” supports and acts as a hub for a certain kind of worldview, scientific view, research methodology, and mathematical rationality, which are spread in society through the educational system and the media. According to the “invisible hand,” the individuals’ selfish interest automatically results in the improvement in society as a whole. The “invisible hand,” therefore, focuses on individual behavior and recommends abstraction from the social consequences of individual behavior. This atomistic view, together with its attendant abstraction from society as a whole, constitutes the foundation of the ideological character of the “invisible hand.” This is because it conceals the actual social consequences of what it supports. This chapter suggests the use of a multi-paradigmatic approach as a way to prevent such a limited and partial view to dominate, and therefore, a multi-paradigmatic approach would overcome the ideological bias.