Adam Smith's* Invisible Hand Explained in One Minute: Definition, Theory & Controversies

There's quite a bit of controversy surrounding Adam Smith's invisible hand. In fact, it's even highly debated just what kind of a role Adam Smith had when it comes to the invisible hand concept, since the term "invisible hand" has only been mentioned three times in his writings.

Still, nobody can deny that the invisible hand is one of the most popular terms in the world of economics. Theories surrounding the invisible hand abound and unfortunately, so do controversies.

Through this video, the term "invisible hand" has been defined as well as explained or in other words, we'll cover everything from definition to controversies in one minute.

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[rama]

This helped me a lot with my economics assignment. Thanks!

[dirtywhitellama]

This video actually never said what invisible hand is at all. It talks about the role of government in free market economy, but never clarifies what relation this has to the term invisible hand or what is meant by it.

[zwllbyq]

omg i finally understood it i was reading books and still didnt get it but this was clear and straight to the point thank you

[DayB]

I see money & market working somewhat similar to how water works in a cooling system. It's nice because it communicates all parts and lets the heat transfer from the hot places to the cold ones, but you also need to set some boundaries. Otherwise, you'll end up with water in your gas, or in the electric supply... The market has a mind of its own (in some sense), so we need to apply the corresponding restrictions.

[emo]

What the vast majority of us get from the invisible hand is the middle finger

[fabriciofercher]

The Economy: a balanced system according to the Carrying Capacity of the Earth and based in inventories, must be control. It is like a cruise liner without any information of the food, water... accordingly to the amount of passenger.

[Random-knty]

I still don't get it as much as i tried to, i believe it's my being a non-english native .. what does the invisible has to do about the economy as to had it named as such? .. is the invisible hand concept still being applied nowadays? Thanks in advance i just need some more explanation thanks

[anonymousanonymous]

"The concept itself became a favorite among Austrian economists" that explains a few things

[davidpower]

Wasn't Adam Smith's invisible hand more to do with a home bias, preventing businesses moving abroad, . The term has simply been hijacked by modern economist to men less state intervention. Im simply building upon what you have said, about it being used by other economists.

[nemostrangesonginthedirt]

Thank you! You help me learn economics every single video that I watch from you.

[mojtabanazari]

Thank you for these wonderful videos! Would you please enable automatic subtitle for this video and a few other ones which exceptionally the subtitle is not accessible for them?

[gilberttorres]

if there is no regulations they businesses can do a free for all. I am not sure how that's a good idea.

[mynameis]

How would you define self interted individuals in simple english??

[rnklv]

Perhaps the " invisible hand" can use a helping hand at times, tweaking the system but not overthrowing the system.

[radeonblue]

The greatest show on Page 390 brings me here

[ThethNinjaTurtle]

INCORRECT IT DID NOT CAUSE THE RESSESSION!

[cnashford]

Thanks for this! - a new subscriber
Edit: Just FYI: on 2nd thought, I think that I may have been already subscribed, but YouTube unsubscribed me.

[NeilNileStudios]

The first time I️ heard invisble hand was in Star wars episode 3. That was general grevious ship's name.

[SpeakingCommonSense]

One minute biased economics. Nice work...