2006-06-18 05:31:52 · 4 answers · asked by jodihemp@sbcglobal.net 1 in Social Science ➔ Economics
The invisible hand is a metaphor created by Adam Smith to illustrate how the wealthy, by following their individual self-interest, unwittingly stimulate the economy and assist the poor. In The Wealth of Nations, Adam Smith makes the claim that, within the system of capitalism, an individual acting for his own good tends also to promote the good of his community. He attributed this principle to a social mechanism that he called “the invisible hand”.
2006-06-18 05:38:43 · answer #1 · answered by Halle 4 · 2⤊ 0⤋
He meant the invisible hand of Demand that controls the market. Supply and Demand, the two basic elements in economics. This rules the world. Every thing is ruled by the "invisible hand." Not only does it run the the legal side of business but the black market too. It is why there are criminals and ceos making millions of dollars.
2006-06-18 12:37:15 · answer #2 · answered by Anonymous · 0⤊ 1⤋
It simply means the outcome of demand and supply. Something sure happens when i want and you have to sell. Same goes for mating. Man and woman and the result often time is baby made in the womb thru God's invisible hands?
2006-06-18 12:39:41 · answer #3 · answered by mikail 3 · 0⤊ 1⤋
laissez-faire : which basically means free control. Instead of government regulation, the people control everything.
2006-06-18 12:38:02 · answer #4 · answered by Beautiful Insanity 4 · 0⤊ 1⤋