Adam's Smith's Invisible Hand of the Marketplace is the theory that economic imbalances are self-correcting, not requiring intervention by government so long as the equal rights of the individual are respected. The Invisible Hand of the Marketplace is also referred… Full Answer
Adam Smith made the argument that free trade produced the wealth of nations through what he called the invisible hand. The invisible hand refers to the way the marketplace is self-regulating. Smith was a Scottish philosopher.
Adam Smith's invisible hand refers to the self correcting features of a free market. Prices respond to the combined influences of supply and demand, and no regulatory agency or deliberate guidance is needed to make this happen, it happens by… Full Answer
The invisible hand is a term coined by Adam Smith in the 1700s to describe the operation of free markets. The general idea is that individuals pursuing their own self interest ends up doing what is best for society "as… Full Answer
It suggests there is an invisible balance between supply and demand. If there's too much supply, the invisible hand pushes the price down until vendors are able to sell their overstock. If there is less demand (as for carriages when… Full Answer
The mechanism that works in a free-market (the market we observe in the USA or UK) which equates supply and demand. This obviously doesn't always occur, but it is the "invisible hand" that we refer to.
Well, the affect of the government in these circumstances is usually to deny the data and demonize their critics. But the effect of the government is to reduce GDP and indeed all economic activity, [for GDP is a poor measure… Full Answer