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Society, as a whole, benefits through, perhaps, the taxes the business pays to fund government programs and even the products that the business creates that may increase everyone else’s standard of living. On one hand, the business owner that is only interested in his or her own financial gains by building a business, helps create other people’s wealth as they benefit from the business.
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Of course, like all other ideas that seem to make sense but are puzzling in application, the invisible hand concept has been used to support everything, from total free markets and trade to protectionism and total government economic control. Therefore, the greedy and selfish landlord “without intending it, without knowing it, advance the interest of the society.” He writes of a selfish and greedy landlord that views the world through his wealth without any genuine regard for the people around him-most specifically his workers.Īlthough the landlord desires to consume all the fruits of his wealth because he cannot realistically eat all that his lands produce, he is forced by the invisible hand to distribute to others the necessities of life through wages, charity and other means almost in the same proportion, as Smith writes, “which would have been made, had the earth been divided into equal portions among all its inhabitants.” Smith wrote about what he called the “invisible hand” that helps move the world in which we live. He wrote two books- The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776)-that shaped modern economics and the politics of economics. Adam Smith was Scottish and lived more than 200 years ago. IT is hard to pin down a description of a man who has shaped critical thinking in areas as diverse as social morality, economics and politics.
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