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2. What does the metaphor of the invisible hand mean?

2. What does the metaphor of the invisible hand mean?

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2. What does the metaphor of the invisible hand mean?
Transcribed Image Text:2. What does the metaphor of the invisible hand mean?
Amani Medina 12/8/21 What is self-interest? What is the "invisible hand?" Adam Smith believed that individuals should be free to pursue their own economic self-interest [things that will bring you personal gain or benefit]. Through pursuing their.own self-interest, Smith believed that all of society would benefit. Smith argued that people would make things that feed their self-interests of increasing their wealth and profit.such as a coat maker who makes coats. Even though he is making coats out of self-interest or a selfish desire for profit, Smith argued that this would still benefit the rest of society because people need coats and are willing to pay for them. Smith believed an economy like this should work smoothly and efficiently without any government interference, as if guided and organized by an invisible hand. The invisible hand is a metaphor for a şelf-regulating economy where people get what they need by pursuing their own self-interests.
Transcribed Image Text:Amani Medina 12/8/21 What is self-interest? What is the "invisible hand?" Adam Smith believed that individuals should be free to pursue their own economic self-interest [things that will bring you personal gain or benefit]. Through pursuing their.own self-interest, Smith believed that all of society would benefit. Smith argued that people would make things that feed their self-interests of increasing their wealth and profit.such as a coat maker who makes coats. Even though he is making coats out of self-interest or a selfish desire for profit, Smith argued that this would still benefit the rest of society because people need coats and are willing to pay for them. Smith believed an economy like this should work smoothly and efficiently without any government interference, as if guided and organized by an invisible hand. The invisible hand is a metaphor for a şelf-regulating economy where people get what they need by pursuing their own self-interests.
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