#Adam smith invisible hand sparknotes free

While Smith's arguments against government management of the economy were very popular, the ideas were not new. His argumentation against government interventions into markets were based on specific cases and were not absolute. Smith himself described the term 'invisible hand' as rhetorical and unscientific, and did not use it to refer to any general principle of economics. The idea of trade and market exchange perfectly channeling self-interest toward socially desirable ends is a central justification for newer versions of the laissez-faire economic philosophy which lie behind neoclassical economics. Twentieth century economists such as Paul Samuelson popularized the use of the term to refer more generally to unintended greater social impacts brought about by individuals acting in their own self-interest. More famously, it is also used once in his Wealth of Nations, explaining how international traders can be trusted if the incentives are right, often making it unnecessary for governments to intervene.

It is used once in his Theory of Moral Sentiments of 1759 as part of a trickle down argument defending monopolistic land-ownership.

Smith originally mentioned the term only in specific examples.

#Adam smith invisible hand sparknotes free

The invisible hand is a metaphor inspired by the Scottish moral philosopher Adam Smith that describes the incentives which free markets often create for self-interested people to act in the public interest.