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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.
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 in his books, how it works, and why it is controversial.
The invisible hand is a metaphor inspired by the Scottish economist and moral philosopher Adam Smith that describes the incentives which free markets sometimes create for self-interested people to accidentally act in the public interest, even when this is not something they intended.
Jul 19, 2024 · Learn what the invisible hand theory is, how it was coined by Adam Smith, and how it affects the economy. The invisible hand is a metaphor for the self-interested forces that impact the free market and create market equilibrium.
May 20, 2018 · Invisible hand – Adam Smith. In the Wealth of Nations (1783) Adam Smith mentioned the term ‘invisible hand’ on two occasions. The book is an important explanation of how free markets can operate.
The Invisible Hand. Adam Smith described the opposing, but complementary, forces of self-interest and competition as the “invisible hand.” While self-interested producers and consumers are not acting with the intent of serving the needs of others or society, they often do.
Learn how Adam Smith used the metaphor of the Invisible Hand to describe the self-regulating and cooperative nature of markets. Explore how Hayek, Friedman and Read elaborated on the concept and how Marx criticized it.
