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Information > Financial Terms > This page Invisible Hand Adam Smith in The Wealth of Nations explained that individuals will act in a way that promotes their own self interest. But, by doing so, as if "led by an invisible hand to promote an end which was no part of his intention", he is also promoting the general welfare. Because of this, according to Smith, government interference in the economy is unnecessary. This belief underscored Smith's view of the virtues of free markets and free trade. Back to Information |