In this article Jonathan Schlefer investigates if the theory of the invisible hand of Adam Smith is true and concludes to an interesting point of view. Although the theory is more than two centuries old economic theorists investigating the matter finally concluded in the 1970s that there is no reason to believe markets are led, as if by an invisible hand, to an optimal equilibrium — or any equilibrium at all.
A term coined by economist Adam Smith in his 1776 book "An Inquiry into the Nature and Causes of the Wealth of Nations". In his book he states: "Every individual necessarily labors to render the annual revenue of the society as great as he can ... 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"
Dr Eamonn Butler, director of the Adam Smith Institute, speaks about the long journey to get recognition for the economist in his home country.
Tell's the live story of Adam Smith the Scottish social philosopher and political economist. After two centuries, Adam Smith remains a towering figure in the history of economic thought. Known primarily for a single work: "An Inquiry into the Nature and Causes of the Wealth of Nations (1776), the first comprehensive system of political economy."