It doesn’t seam complex but I’m just missing the point and I need to be able to explain it to someone else to show I understand it.
In: Economics
The “invisible hand” is a way of describing how markets tend to produce the goods and services that are in demand without the need for someone to plan everything.
For example, if you live in a major city, there is probably a taco truck in your town. That taco truck couldn’t exist without a huge network of suppliers – tomato and corn farmers, factories that produce spices, iron mines, automobile companies, international oil shipments, and so on. But there is no government agency or master planner who decided that we need to create all these things so we can have a taco truck. The guy drilling for oil has no idea that he’s supporting a taco truck, nor does the person picking chili peppers, or the person manufacturing heating elements.
The taco truck exists because of millions of people making economic decisions in their own individual interests. Even the person who owns the taco truck doesn’t do it because you, in particular, want to enjoy a delicious taco. But all the myriad, incredibly complex choices that combine to put that delicious taco into your mouth can be described as an “invisible hand” that enables it to happen.
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