The Invisible Hand (economics concept)

The Invisible Hand is a concept in economics introduced by Adam Smith, describing how individuals pursuing their own interests can unintentionally benefit society as a whole. When people seek to maximize their own gains, they often produce goods and services that others want, leading to efficient allocation of resources without central planning. This natural self-regulation helps markets function smoothly, balancing supply and demand. In essence, the Invisible Hand illustrates how personal incentives can lead to positive economic outcomes for society, even when individuals are acting independently without intending to benefit everyone.