Search results
May 15, 2024 · The invisible hand is a metaphor for how self-interested individuals produce what is socially necessary in a free market economy. Learn the origin, meaning, and controversies of this concept from Adam Smith's writings and real-world examples.
May 20, 2018 · The invisible hand is a concept that – even without any observable intervention – free markets will determine an equilibrium in the supply and demand for goods. The invisible hand means that by following their self-interest – consumers and firms can create an efficient allocation of resources for the whole of society.
Jan 9, 2021 · The invisible hand is a concept from Adam Smith's theory of free market economics. It suggests that self-interested individuals and businesses naturally promote the public good and economic efficiency. Learn how the invisible hand works, its limitations and criticisms.
The notion of the invisible hand has been employed in economics and other social sciences to explain the division of labour, the emergence of a medium of exchange, the growth of wealth, the patterns (such as price levels) manifest in market competition, and the institutions and rules of society.
Feb 28, 2018 · Taken naively, at face value, the "invisible hand" is an all-purpose argument against the regulation of free markets. Is a factory owner underpaying his employees, making them work long hours, and compelling them to live in substandard housing?
Jul 19, 2024 · The invisible hand is a metaphor for the self-interested forces that impact the free market. Learn how it works, its history and its limitations from economists and experts.
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.
