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To simplify it, it is the idea that if everyone acts in their best self interests independently, the economy will naturally turn out the most efficient outcome. This means that government or regulatory bodies do not need to be involved in price or resource allocation.

The free market system in which markets regulate themselves through price is usually a good place to start.

-Think Law of Supply and Demand- This is a major part of capitalist markets

Adam Smith said something to the effect of the market is operated by some "invisible hand" that makes everything run smoothly, capitalism is a system in which the "invisible hand" is allowed to operate.

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14y ago

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