What is the Invisible Hand?

What is the Invisible Hand?

invisible hand, metaphor introduced by 18th-century Scottish philosopher and economist Adam Smith that characterizes the mechanisms by which beneficial social and economic outcomes can arise from the accumulated self-interested actions of individuals, neither of whom intends to achieve such outcomes .
The notion of the invisible hand has been used in economics and other social sciences to explain the division of labor, the emergence of a medium of exchange, the growth of wealth, the patterns (such as price levels) manifested in market competition, and the institutions and rules of the Company.

More controversially, it has been used to argue that free markets, made up of economic agents acting in their own best interests, produce the best possible social and economic outcomes.

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