Adam Smith's* Invisible Hand Explained in One Minute: Definition, Theory & Controversies

Thank you so much for this video❤️❤️

This is the dumbest video I have ever seen. You say the Great Recession happened because of the free market. The Federal Reserve which lowered interest rates to encourage speculation in the real estate market and encourage borrowing is not a free market system. It is an example of free market capitalism not state capitalism. Please stop educating if you don't know what you are talking about.

No, the recession was caused by the government. They caused a lot of inflation. Thus causing malinvestments and unemployment.

This bullshit theory has been debunked at least 1000 times

Thank you! You help me learn economics every single video that I watch from you.

Thank you for these wonderful videos! Would you please enable automatic subtitle for this video and a few other ones which exceptionally the subtitle is not accessible for them?

How would you define self interted individuals in simple english??

Adam Smith's Wealth of Nations is in the public domain and can be downloaded from Project Gutenberg and searched. The printed book can cost you $15 and take a lot of effort to search. Has Smith's "Invisible Hand" been used as a propaganda tool for decades since most people would never read WoN?

Smith used the word 'invisible' six times but only once as "invisible hand". It is really curious that we hear about the 'invisible hand' so much.

Smith used the word 'education' EIGHTY TIMES. We are not told about that. Search for "and account" and you will find multiple instances of "read, write, and account", not "read, write and arithmetic". Double entry accounting was more than 300 years old when Smith wrote Wealth of Nations, but 50% of Brits were illiterate and public schools did not exist in 1776.

The United States could have made accounting/finance mandatory in the schools since Sputnik. Wouldn't that have helped everyone best serve their own self interest? But we do not hear the people who propagandize us about the "invisible hand" advocating mandatory accounting because that might make their invisible rip-offs more difficult.

Adam Smith never used the word 'depreciation'. He mentioned paper money being depreciated one time. Marx wrote about 'depreciation' a number of times in Das Kapital, sometimes regarding the depreciation of machines.

Consumers did not buy automobiles and air conditioners and televisions before 1885.
Marx died in 1883.

But it's OK! Our brilliant economists do not talk about the depreciation of under engineered consumer trash today either. Every time you buy a replacement the purchase is added to GDP. What about NDP? Oh sorry, you never heard an economist explain NDP. That's OK too, they only depreciate the Capital Goods and ignore the depreciation of consumer junk anyway.

Love from India thankew so much ❤️

Free trade gets stuff made.

BEWARE: THIS VIDEO IS UBER BULLSHIT IN ALL POSSIBLE LEVELS. IT DOESNT EVEN CITES ADAM SMITH

if there is no regulations they businesses can do a free for all. I am not sure how that's a good idea.

Perhaps the " invisible hand" can use a helping hand at times, tweaking the system but not overthrowing the system.

The Economy: a balanced system according to the Carrying Capacity of the Earth and based in inventories, must be control. It is like a cruise liner without any information of the food, water... accordingly to the amount of passenger.

"The concept itself became a favorite among Austrian economists" that explains a few things

It's not the government. It's the privately owned bank known as the federal reserve. The Cause of inflation,deflation,massive transfers of wealth and both the 29 and the 80s market crash.

So, if we were to use the invisible hand theory would people be able to sell what ever they want/ whatever services they wanted to sell? Because if so, there would be a huge problem in that... Hahhahahha, there would be alot of criminal activity since the government wouldnt be regulating it... 😂

One minute biased economics. Nice work...

This helped me a lot with my economics assignment. Thanks!

The greatest show on Earth..... Page 390 brings me here

This is glorious, I've been looking for "wealth opportunities" for a while now, and I think this has helped. Ever heard of - Xiyannah Lansaiah Theorem - (Have a quick look on google cant remember the place now ) ? Ive heard some awesome things about it and my cousin got excellent success with it.

This video actually never said what invisible hand is at all. It talks about the role of government in free market economy, but never clarifies what relation this has to the term invisible hand or what is meant by it.

Loved it

The first time I️ heard invisble hand was in Star wars episode 3. That was general grevious ship's name.

You failed to mention that Smith never used the term to imply that the market could self regulate in any way, the Wealth of Nations is filled with his specific suggestions on where governments should and should not intervene in capitalist markets. The "theory" of the Austrian school is just a disingenuous load of shit used to spackle the cracks in the constant deteriorating capitalist mode of production.

min yoongi brought me here wow

I still don't get it as much as i tried to, i believe it's my being a non-english native .. what does the invisible has to do about the economy as to had it named as such? .. is the invisible hand concept still being applied nowadays? Thanks in advance i just need some more explanation thanks

Vote Democrat 2020

What the vast majority of us get from the invisible hand is the middle finger

EpiPens versus invisible hand, go!

SO HELPFULLLLL THANKS

SOOO close. Except the entirely false narrative that the "invisible hand" concept had anything to do with the great recession. It was the government telling lenders that they HAD to lend to "high-risk" clients that caused the bubble in the first place. And incentivising the bad behaviour that followed. If the government had never been involved, those banks making the big gambles would have crashed themselves, but not the entire economy.

THE GREAT RECESSION WASN'T CAUSED BY THE FREE MARKET. IT WAS GOVERNEMENT INVOLVEMENT. One minut economics? More like one minute indoctrination.

State is a gang of theives writ large

INCORRECT IT DID NOT CAUSE THE RESSESSION!

omg i finally understood it i was reading books and still didnt get it but this was clear and straight to the point thank you

The Cards

super!

Wasn't Adam Smith's invisible hand more to do with a home bias, preventing businesses moving abroad,. The term has simply been hijacked by modern economist to men less state intervention. Im simply building upon what you have said, about it being used by other economists.

I have example, how invisible hand destroys country. Russia 1991 there is a law of free market. Everyone can do everything. First. State lost stategical factilies. everything from oil production to car factories was out of state control. 90% of them going offshore. second 10000 facories and plants lost. yes they abandoned or selled. Thrid all private sector was criminalized. because no state control. This is a true working sample of work that do invisible hand. Only Russia and some african coutries tryed this economy model.