What is the Invisible Hand in Economics in simple words
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Smith also never used the phrase “invisible hand of the market,” and advocated for strong anti-monopolistic regulations, distribution of excess profits to the poor and infirm, and a robust public education system— something that did not exist in the 18th century.
The commenter above eloquently distilled the idea of the invisible hand. The phrase appears this way in Wealth of Nations:
“By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it…”
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