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What is the Invisible Hand?

 , updated on December 28, 2017
Invisible hand is a metaphor for the unintended global or national impact of individual choices. The term was first coined by economist and philosopher Adam Smith in 1759. It is a key concept in economics to describe the actions of millions of individuals as acting like a invisible hand that pushes markets towards equilibrium.
Overview: Invisible Hand
FunctionEconomics
DefinitionIndividual actions collectively act like an invisible hand moving the global economy in one direction or another.
ValueThe concept of the invisible hand can be used to argue for economic systems that give individuals strong incentives. In other words, putting the right incentives in place has a dramatic effect at the macro level.

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