The Invisible Hand

published 5 years ago by BBC Radio

Does an invisible hand guide the economy? Narrated by Aidan Turner.

NBI eighteenth century Adam Smith use the metaphor of an invisible hand to describe how individuals making self interested decisions can collectively and unwittingly engineer ineffective economic system that is in the public interest. This is how the invisible hand is usually understood today. When there's plenty of grain on the markets sellers dropped their prices to make sales. When it gets scarcer the price rises and the financial incentive for growing as or importing it gets stronger. The individual buyers sellers growers importers. Don't set out to act for the public good they just go about their business thinking about their own gains and losses buying whatever they can to get the best deal. But out of their self interest to choices in a free market an efficient economy emerges. And this allegedly. Is superior to any system the state corporate ...

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