![]() The efforts of the individual are led, as if, by an invisible hand: As Smith affirms, this chain-linked impact on society is not followed, perceived, or known by any single person in his own individual efforts-he does not even need to know it. What Adam Smith actually said was that an individual’s behavior and decision-making, insofar as it is driven by certain rules (for example, looking for profit to the satisfaction of customers), adds value to all the individuals who behave similarly-and in this way they all add value to society together. In practice, it is still too invisible, so governments are tempted to make it more visible through political interventions. The basic problem with the “invisible hand of the market” is that it is a metaphor, not a concept or principle only simpletons refer to it as such. By preferring the support of domestic to that of foreign industry he intends only his own security and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.” 1 He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. “ … every individual necessarily labors to render the annual revenue of the society as great as he can. He would rely on competitive markets to keep businesses in check because he felt the government would conspire with businesses and not protect consumers.The Invisible Hand of the Market Milan Zelený ![]() He said “Consumption is the sole end and purpose of all production.” He said “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public.” Smith would be shocked at all the political entrepreneurs today. He was against government subsidies to business.
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