Adam Smith published "The Wealth of Nations" on March 9, 1776, describing the emerging capitalist system that was replacing the dominant mercantilist economic model of the time. The book defined Smith's concept of the "invisible hand," referring to natural economic forces that guide individual self-interest toward mutually satisfying trade without government intervention. This idea of an "invisible hand" is linked to free-market capitalism, in which voluntary exchange between individuals and nations is allowed to set market prices without interference. Smith argued that giving everyone the freedom to pursue their own self-interest through trade and industry would ultimately benefit all of society through increased prosperity.
Adam Smith published "The Wealth of Nations" on March 9, 1776, describing the emerging capitalist system that was replacing the dominant mercantilist economic model of the time. The book defined Smith's concept of the "invisible hand," referring to natural economic forces that guide individual self-interest toward mutually satisfying trade without government intervention. This idea of an "invisible hand" is linked to free-market capitalism, in which voluntary exchange between individuals and nations is allowed to set market prices without interference. Smith argued that giving everyone the freedom to pursue their own self-interest through trade and industry would ultimately benefit all of society through increased prosperity.
Adam Smith published "The Wealth of Nations" on March 9, 1776, describing the emerging capitalist system that was replacing the dominant mercantilist economic model of the time. The book defined Smith's concept of the "invisible hand," referring to natural economic forces that guide individual self-interest toward mutually satisfying trade without government intervention. This idea of an "invisible hand" is linked to free-market capitalism, in which voluntary exchange between individuals and nations is allowed to set market prices without interference. Smith argued that giving everyone the freedom to pursue their own self-interest through trade and industry would ultimately benefit all of society through increased prosperity.
On March 9th 1776, Adam Smith, a Scottish moral philosopher and
economist wrote and published the book “The Wealth of Nations”. In this book, he described the capitalist system that was upsetting the mercantilist system. The argument behind mercantilism was that wealth was fixed and finite, that meant that a nation should sold their products to other nations without buying anything in return (just as an exchange). The part he defined as “Invisible Hand”, is about was about natural forces that guided people’s own interest to satisfied their necessities, without the government’s intervention. The definition about “Invisible Hand” can be linked with the “Free-Market Capitalism”, since it is an economic model that promotes the free flow of exchange between us as individuals or as a nation also without the government’s interventions, in which the market can price all their goods or services without the government. We can finish saying that Smith, principally, in certain way encouraged us to just care about us (self-interest) to get prosperity. He argued that giving everyone the chance of free trade (produce or exchange good as whatever they wanted to) peoples self-interest will bring prosperity. He wanted us to have the vision of abundancy and freedom for everyone and to put in practice the savings, hard work and self-interest.