Here is a fairly comprehensive treatment of Smith's use of the metaphor of the invisible hand, showing that our fixation on it since the mid-twentieth century is misplaced.
econjwatch.org/file_download/252/2009-05-kennedy-watchpad.pdf
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The misplaced emphasis of the "invisible hand" metaphor in economics today is at once both surprising, and yet not completely unexpected. It is surprising that modern economists, many of whom claim to read, ananlyze, and advocate Smith doctrines, would adhere to such exaggerated economic concepts derived from the relatively insignificant passage in The Wealth of Nations that makes reference to the "invisible hand."
On the other hand, it is not uncommon for individuals or groups of people to take the writings or teachings of another and distort the message that the speaker intended to convey. Specifically, this reminds me of St. Paul's take on Christianity, which scholars have argued is not coherent with the teachings of Jesus.
Whether these misconcenptions concerning Smith and the "Invisible Hand" were an accident on the part of scholars, or a deliberate attempt to pervert the writings of a well-respected economic philosopher, the view presented by many modern economists appears to be dangerously misleading.
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