Concept

Concept Explaining a Concept: Concept of the Invisible Hand in a Laissez-faire economy “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 it.” Adam Smith, Inquiry into the Nature and Causes of the Wealth of Nations 1776. What business does a government have in commerce and trade' Why would a government want to interfere between two countries benefiting from each other by trade' What right does the government have in two individuals wanting each other’s products or services' According to some, commerce and trade should be permitted to operate free of controls of any kind; there should be no tariffs or other barriers. This is where the term laissez-faire is introduced. It’s direct translation in French, “leave alone to do”, is self-explanatory. A strong believer in this type of economics is Adam Smith, both a philosopher and an economist. Born on invisible, hand, smith, government, laissez-faire, wealth, people, own, adam, economy, economic, consumers, called, businesses, whatever, wanted, trade, today, should, services, security, nature, nations, intends, inquiry, individual, economics, causes, business, two, though, term, system, started, self-interest, saw, same, role, result, production, philosophy, pearce, one, mass, market, labor, keynesian, introduced, industry, individuals