Who do you think should control the economy? Do you think the economy should be left alone, and allowed it to reach a good point on its own? Or, do you think the economy should be influence by the government, though means of intervention?
During the 18th century, Adam Smith, brought about the idea of the 'invisible hand'. This idea was simply, the economy should be left alone and everything will be okay, or guided by the 'invisible hand'.
As humans, we are all guided by our own self-interest. Adam Smith thought that, this self-interest would allow sellers to compete with one and other to obtain more buyers.
This could lead us to equilibrium by giving buyers competitive options to choose from without the influence of outside forces, other than the 'invisible hand' or our own self-interest.
In The Wealth of Nations, Smith wrote,
He also wrote it in his book, The Theory of Moral Sentiments,
Essentially, the 'invisible hand' is a market force, in which you can not see, pushes and pulls the demand and supply of commodities in a free market that could help achieve equilibrium.
Hello, as you may know my name is Kendrick Hardison. This blog will be used to share my experiences, teach things I may have learned, advise others, and much more. If you have any questions or if you would like for me to write a post on something you are interested in, click here to get to my contact page.
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