Quick Definition

The invisible hand is a metaphor used by economist Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society as a whole.

Examples

• 1When a bakery decides to produce more bread to meet increased demand, it inadvertently benefits the community by ensuring a steady supply of bread.
• 2A tech company innovating to outdo competitors improves technology and efficiency for the entire sector, benefiting consumers.
• 3When investors seek higher returns by funding green energy projects, they contribute to environmental sustainability without explicit intent to do so.
• 4A clothing retailer stocking up on popular styles from ethical sources drives industry standards up, benefiting workers and consumers.

Tags