Davis 1
Microeconomics
24 November 2015
How Far Can The Invisible Hand Reach?
“…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.”
-Adam Smith, “An Inquiry into the Nature and Causes of the Wealth of Nations”
There are few metaphors that have described the American psyche as well as Adam
Smith’s “invisible hand.” In the passage above, taken from his 1776 book “The Wealth of
Nations” Adam Smith sets out the device by which he feels economic society is operated. Every
