The Invisible Hand (Adam Smith)

The Invisible Hand is a concept introduced by economist Adam Smith, describing how individuals pursuing their own economic interests can unintentionally benefit society as a whole. When people buy and sell goods or services for personal gain, they promote competition, innovation, and efficient resource allocation without needing central planning. This natural self-interest guides markets to allocate resources effectively, leading to economic growth and development. Essentially, even when individuals act in their own interest, the collective outcome often benefits society, as if guided by an invisible hand steering the economy toward balance and prosperity.