Though Adam Smith was not an economist, he is often known as the “father of modern capitalism.” In The Wealth of Nations, Adam Smith described an ‘Invisible Hand.’
The phrase was introduced as a force that helps the supply and demand of goods in the free market to reach equilibrium. Smith suggested that when everyone works for their own interest in a free market, the economy will thrive. He assumed if the government would leave the community alone to buy and sell freely among themselves, the economy will thrive. He explained that if people were allowed to trade freely, self-interested traders in the market will compete with each other, and the economy will thrive.
In a free market where there are no restrictions or regulations imposed by
The phrase was introduced as a force that helps the supply and demand of goods in the free market to reach equilibrium. Smith suggested that when everyone works for their own interest in a free market, the economy will thrive. He assumed if the government would leave the community alone to buy and sell freely among themselves, the economy will thrive. He explained that if people were allowed to trade freely, self-interested traders in the market will compete with each other, and the economy will thrive.
In a free market where there are no restrictions or regulations imposed by