The “Invisible Hand” concept in free-market economics was coined by Adam Smith, a Scottish economist and philosopher.
📘 About the Concept:
- First Mentioned: In his book “The Theory of Moral Sentiments” (1759) and later popularized in “The Wealth of Nations” (1776).
- Meaning: The idea that individuals pursuing their own self-interest unintentionally contribute to the economic well-being of society.
- Example: A baker bakes bread to earn money, but by doing so, provides food for others—benefiting society without intending to.
🎓 Summary:
- Economist: Adam Smith
- Century: 18th century
- Famous Book: The Wealth of Nations (1776)
- Concept: The free market regulates itself through competition, supply and demand, and individuals’ self-interest.