The Visible Hand

"The Visible Hand" refers to the ability of large organizations, especially corporations, to coordinate and control economic activities directly, much like a central manager overseeing production and distribution. Unlike free markets where supply and demand are led by individual preferences, the "visible hand" signifies managerial decision-making and planning that guide economic outcomes. This concept contrasts with Adam Smith's idea of the "invisible hand," which suggests markets naturally self-regulate. In essence, it highlights how large firms and their managers influence the economy through deliberate strategies, rather than relying solely on market forces.