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May 15, 2024 · The invisible hand is a metaphor for the unseen forces that move the free market economy. Learn how Adam Smith introduced the concept, how it works, and why it is controversial.
The invisible hand is a metaphor inspired by the Scottish moral philosopher Adam Smith that describes the incentives which free markets sometimes create for self-interested people to act unintentionally in the public interest. Smith originally mentioned the term in two specific, but different, economic examples.
invisible hand, metaphor, introduced by the 18th-century Scottish philosopher and economist Adam Smith, that characterizes the mechanisms through which beneficial social and economic outcomes may arise from the accumulated self-interested actions of individuals, none of whom intends to bring about such outcomes.
Learn what the invisible hand is, how Adam Smith used it to describe the free market's self-regulating mechanism, and how economists have interpreted it since then. The invisible hand is a metaphor for how individual self-interest can benefit society as a whole.
Jul 19, 2024 · The invisible hand is a foundational concept for rational choice theory, which states that people will make decisions based on their own personal self-interest and benefits. The metaphor of the...
May 20, 2018 · Learn how the invisible hand works in free markets to create an efficient allocation of resources. Find out the implications, limitations and criticisms of this concept from Adam Smith and others.
Oct 12, 2022 · Eighteenth century economist Adam Smith developed the concept of the Invisible Hand, which became one of the cornerstone concepts of a free market economic system.
