The Invisible Hand of the Market

The "Invisible Hand of the Market" is a concept from economics that describes how, through individuals pursuing their own interests, markets naturally tend to allocate resources efficiently. When people buy and sell goods based on their needs and preferences, and businesses produce what consumers want, an overall balance emerges without central planning. This process helps promote innovation, competition, and fair prices. Essentially, individual self-interest, guided by prices and incentives, unintentionally benefits society by ensuring resources are used where they are most valued, leading to a well-functioning economy.