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Adam Smith (1723-1790)

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studied in Glasgow and Oxford

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1746 returned to Scotland

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taught at Edinborough and Glasgow

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concept of the Invisible Hand

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forces that allow a system that is fueled by personal satisfaction and the pursuit of profit to produce results that are beneficial for a society as a whole

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the competition between buyers and sellers, each motivated by the maximization of their own satisfaction that serves to stimulate innovation and drive down costs

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a self regulating system

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didn't require governments to direct it to socially beneficial ends

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Adam Smith only mentioned the term "Invisible Hand" in his writings three times

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never linked it to the free market as directly as suggested above

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he used the term in the case to sell at home or abroad in an attack on mercantilism (governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers)

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others developed the concept Invisible Hand for him

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the market will decide the amount that is produced and the price it is sold at

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competition among producers will stimulate efficiency

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maximize profits

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prompt lower prices

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invite investment

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free marketeers and globalists adhered to this concept

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however, there are conditions which need to exist for the Invisible Hand to work

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perfect knowledge between consumers and producers

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no entry barriers to markets

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no transport or other transaction costs

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but none of these conditions exist in practice

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this concept is blind to size and power

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different players in the market

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different capacities to withstand change

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different dependencies on the market