In the history of economics, few concepts have been misunderstood and misused more often than the “invisible hand”. To this end, we would like to thank the inventor of this phrase: Adam Smith, an 18th century Scottish economist, in his influential book The Theory of Moral Emotions. More importantly, the wealth of the country. In the book Moral Sentiments, published in 1759, Smith describes how wealthy individuals are “held by an invisible hand to distribute almost the same necessities of life. If the earth is divided into equal parts of all the inhabitants, the necessities of life will be equally distributed. So Smith realizes that Rich people do not live in a vacuum: they need to pay (and feed) individuals who grow food, make household goods, and work hard for their servants. Simply put, they can’t keep all the money for themselves! By the time he published The Wealth of Nations in 1776, Smith had outlined his concept of an invisible hand: a wealthy individual who “guides” in a way that industrial products may have the greatest value. Industry only wants its own interests, and he thinks so, just like in many other countries. Smith said that in order to reduce the gorgeous language of the 18th century, selfish people achieved their goals in the market (for example, charging high prices for their goods, or paying as little as possible). (Benefiting workers) In fact, unconsciously contributed to a larger economic model in which everyone benefited, the poor and the rich. You can probably see what we’re going to do. Naively, on the surface, the “invisible hand” is a general argument against free market regulation. Are factory owners underestimating employees’wages, making them work long hours and forcing them to live in substandard housing? The “invisible hand” will eventually correct this injustice, as the market is self-correcting and employers have no choice but to provide better wages and benefits or fail. Moreover, this invisible hand will not only lend a helping hand, but also be more reasonable, fair and effective than any “top-down” regulation imposed by the government (for example, a law that requires half-hour pay for overtime). Is the invisible hand really useful? When Adam Smith wrote The Wealth of Nations, Britain was on the verge of the largest economic expansion in world history. This “industrial revolution” spread factories and factories throughout Britain (and led to widespread wealth and widespread poverty). It’s hard to understand a historical phenomenon when you’re in it. In fact, historians and economists are still debating the proximity (and long-term impact) of the industrial revolution today.