HIST-UA 105 Lecture Notes - Invisible Hand
9 May 2014
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Document Summary
One idea that is prevalent throughout adam smith"s inquiry into the nature and. Causes of the wealth of nations is the notion of the invisible hand that makes the selfish desires of individuals into a greater force that benefits society as a whole. To adam smith the concept of self interests does not have as negative a connotation as it does today. Smith deems the idea as being perfectly natural and necessary for our societies. For example, if two butchers are selling meat at the same price then consumers are willing to buy from either one. Thus this kind of thinking is what constitutes a free market. A free market society is one in which people are forced to consider what other people want like in the example of the butchers. It is a society based on exchange in which the one gives something of value in exchange for something else of value.
