Steering the Circular Economy: A New Role for Adam Smith’s Invisible Hand

Adam Smith’s seminal work in economics suggested that the morality of a society guides the “invisible hand” that steers free trade in a positive direction.  Smith recognized the society-economy nexus and equilibrium in his economic theory as crucial to society’s socioeconomic progress.  The circular economy relates to this economics-environment relationship such that the ecosystem function is an essential component of sustainability.  Sustainability is generally understood to be a form of dynamic equilibrium, where losses and gains balance each other.  In terms of resources, materials are used but then recycled in such a way that the stock is not diminished.