Adam Smith: The Invisible Hand

Adam Smith, a world renowned economist born in 1723, laid out a strategy for capitalist trade through his book, “The Wealth of Nations.” The “invisible hand” is vital to our society; when a person pursues their “self-love,” the society indirectly benefits. Famous economist Adam Smith introduced the “invisible hand in his world renowned economic novel “The Wealth of Nations.” Smith explains the “invisible hand” as ‘the subtle market force that helps the supply and demand of products in a free market excel.’ In summary, the “invisible hand” is a result of people pursuing self interests that indirectly help keep an efficient supply and demand in free market trade. The most important idea that the “invisible hand” proves is that when people tend to naturally help without incentives, the help becomes more powerful. Although Smith’s ideas were effect and useful for a common economy, China recreated his principles in an even more effective manner through robotics. This method allows …show more content…
The explanation Smith provided for the “invisible hand” allows one to understand the key to a healthy market. On top of the “invisible hand,” Smith explained the importance of pursuing personal interest, as it indirectly helps the economy. These ideas lay out explanations for a successful, free trade economy. However, while these ideas are pertinent to a successful economy, China has recreated Smith’s ideas. China has rapidly grown its robotics technology in a way that manufactures more efficiently than humans and generates more cash flow within the economy. These robots are diminishing Smith’s great ideas because these robots are taking the jobs of humans; therefore, not allowing everyone to pursue their interests. While China continues to advance in robotic technology, their economy continues on an upward trend. Adam Smith’s ideas within “The Wealth of Nations” provide great