Adam Smith introduced the idea of the "invisible hand" in markets. He argued that when individuals in a market pursue their self-interest, they are often guided by this invisible force to make choices that also benefit society. For example, selling mustard ice cream to increase personal profits can, inadvertently, contribute to society's economic well-being by utilizing resources and labor to make more people happy. Smith's insight highlights how market interactions can lead to positive overall outcomes, even without individuals consciously intending it, thanks to the "invisible hand" effect. However, Smith's broader philosophical views, as detailed in *The Theory of Moral Sentiments*, indicate that he did not believe human actions were driven *solely* by self-interest.

The Invisible Hand in Markets

A supermind where decisions are made by agreement among traders. Common in places where trading money, goods, and services occur.

San Jose State University

- Hierarchies
- Democracies
- Markets
- Communities
- Ecosystems

Types of Superminds

Malone, Thomas W. 2018. Superminds: The Surprising Power of People and Computers Thinking Together. Little, Brown Spark.

https://cci.mit.edu/superminds-by-thomas-w-malone/

Superminds: The Surprising Power of People and Computers Thinking Together

A supermind where people with authority make decisions that others must follow. Common in business, nonprofits, and operational divisions of government

Supermind Hierarchies

A supermind where decisions are voted upon. Common in governments, clubs, businesses, and other organizations.

Supermind Democracies

Supermind Markets

A supermind where decisions are made by informal means, consensus, and norms. Common throughout most human experience including local neighborhoods, professional groups, and national cultures

Supermind Communities

A supermind where decisions are based on which has the most power and greatest capacity to survive and reproduce. They occur in the absence of a structure or obligation for cooperation. 

Learn Before

Related

Learn After