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Invisible Hand
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
Adam Smith
in The Wealth of Nations explained that individuals will act in
a way that promotes their own self interest.
But, by doing so, as if "led by an invisible hand to promote
an end which was no part of his intention", he is also promoting
the general welfare. Because
of this, according to Smith, government interference in the economy is
unnecessary. This belief
underscored Smith's view of the virtues of free markets and free trade.
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