Invisible hand

Adam Smith coined the term "invisible hand."

Adam Smith introduced the concept of the invisible hand to illustrate how self-interest can lead to public benefits. He used it in his works to show that individuals pursuing their own gain can unintentionally contribute to the economic well-being of society.

Example

In "The Wealth of Nations," Smith argued that free markets encourage international trade without government intervention, benefiting all parties involved.

Remember this

Understanding the invisible hand helps explain the self-regulating nature of free markets and their ability to produce optimal economic outcomes.

Text adapted from Wikipedia, licensed under CC BY-SA 4.0.

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