The Paradox of the Invisible Hand
Introduced by Adam Smith in the 18th century, the 'invisible hand' describes one of economics' most significant paradoxes. It posits that individuals acting purely out of self-interest—a motive historically viewed as the sin of 'avarice'—can unintentionally produce outcomes that are beneficial for society as a whole. The paradox lies in the idea that morally questionable private behavior (selfishness) can lead to a desirable public good (economic prosperity), as if guided by an unseen force.
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Ch.1 The supply side of the macroeconomy: Unemployment and real wages - The Economy 2.0 Macroeconomics @ CORE Econ
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