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History
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| Number of pages / Number of words: |
7 / 1748 |
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He refers to these forces as the "invisible hand" that many recognize as Adam Smith's most significant contribution to the field of economic study. He used this metaphor to convey the idea that even though a country, or citizen for that matter, is constantly pursuing their individual self-interests, this constant pursuit has a way of regulating the economy for all those involved...
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If each consumer is free to choose what product to buy, and each producer has the ability to decide what to sell and how to produce it, the force of the ?invisible hand' will allow the market to settle on a level of supply and demand that is advantageous to the community. This is the idea of free-price system that came out of The Wealth of Nations...
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