10 Facts About Invisible hand

Invisible hand is a metaphor used by the British moral philosopher Adam Smith for his theorized social mechanism according to which within the free markets the domestic bourgeoisie invest in their home country, even if it is not the most profitable, guided by the "invisible hand" that drives the public interest.

The invisible hand is a theory for why individuals act in a protectionist manner, contrary to free trade.

Whether Smith's quotation of an invisible hand in the middle of his work is a micro-economical statement or a macro-economical statement condemning monopolies and government interferences as in the case of tariffs and patents is debatable.

Invisible hand did not mean this as a criticism, since he held that secular reasoning leads to similar conclusions.

Invisible hand's proposal is merely that in a free market, people usually tend to produce goods desired by their neighbours.

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Invisible hand is traditionally understood as a concept in economics, but Robert Nozick argues in Anarchy, State and Utopia that substantively the same concept exists in a number of other areas of academic discourse under different names, notably Darwinian natural selection.

Invisible hand recognized and discussed what would happen to Britain if the masters adhered to the rules of sound economics – what's now called neoliberalism.

Invisible hand warned that if British manufacturers, merchants, and investors turned abroad, they might profit but England would suffer.

John D Bishop, a professor who worked at Trent University, Peterborough, indicates that the invisible hand might be applied differently to merchants and manufacturers from how it is applied with society.

Invisible hand offers various critiques of the "Invisible Hand", and he writes that "the interest of business people are in fundamental conflict with the interest of society as a whole, and that business people pursue their personal goal at the expense of the public good".