The Invisible Hand

Published: February 5, 2020

Adam Smith’s flash of genius was to see how prices that emerged in the market could coordinate the activities of millions of independent people. This “invisible hand” improves the general welfare, even though it comes from individuals pursuing their own self-interest. The invisible hand explains how self-interest can create an orderly society that benefits everyone.

Discussion Questions:

1. Why do some people believe there is no “invisible hand” in the market?
2. Under what conditions is the “invisible hand” stymied or otherwise disrupted by government mandates?

Additional resources:

• Watch “The Tyranny of Control” with Milton Friedman, available here: http://bit.ly/2tmtaSh.
• Read How Adam Smith Can Change Your Life by Russ Roberts, available here: https://amzn.to/2UptXxt.
• Listen as Russ Roberts talks about his book How Adam Smith Can Change Your Life, available here: https://hvr.co/31AubDz.