ARTICLE TITLE: Role of State in Economy: from the time of Adam Smith to the digital revolution
AUTHORS: Mączyńska E.
ABSTRACT: The article analyzes one of the most controversial issues of modern economic theory - the role of the state in economic processes, including relations between the state and the market. It is shown that the neoliberal treatment of these problems, formally going back to Adam Smith, was in fact a step towards the primitivization of his ideas, ignoring the ethical aspect of his theory, mistakenly interpreting his famous metaphor of the “invisible hand». The situation in the course of the formation of the modern social state is analyzed. Considered are innovations that correct the functions of the modern state with the advent of the digital revolution and the associated civilizational crisis. It is shown that the solution of modern problems of economic development requires the inclusion in the concept of economic rationality and social, and value, and environmental components. In the coordination of all this complex of problems, a significant role is played by the modern state, whose strategy must be built on the principles of new pragmatism
KEYWORDS: state , economic growth , Adam Smith , invisible hand , social state , digital revolution , new pragmatism