• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
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HOME > Archive > 2025 > Volume 13 Number 2 (2025) >
JOEBM 2025 Vol.13(2): 199-202
DOI: 10.18178/joebm.2025.13.2.867

The Development and Practice of the “Invisible Hand”—An Exploration Starting from Adam Smith

Zhang Hanyi
School of International Economics, China Foreign Affairs University, Hangzhou, Zhejiang Province, China
Email: zhy13738034003@qq.com (Z.H.Y.)

Manuscript received November 12, 2024; accepted January 26, 2025; published April 25, 2025.

Abstract—In the long history of economics, Adam Smith’s “invisible hand” theory stands like a brilliant star, illuminating the path for the development of economic theory and profoundly impacting global market practices. Though Smith himself did not place as much importance on the “invisible hand” as writers and scholars have since the 1950s, and even though the term does not hold a central position in The Wealth of Nations, where it is broadly believed to have originated, this metaphor has sparked extensive debate and reflection within both the field of economics and in policy-making. To give modern audiences a fuller understanding of this theory and to better harness its insights, this paper will provide a brief overview of the roots and future implications of Smith’s theory of the “invisible hand.” My argument is that Smith did not deliberately advocate for the “invisible hand” theory. Instead, the “invisible hand” gradually evolved into an economic concept throughout societal progress. We will explore evidence supporting this interpretation and address some intriguing questions regarding Smith’s views on the “invisible hand” and its evolution through the 20th century. Additionally, we will consider how the “invisible hand” framework can offer practical guidance for real-world economic scenarios.

Keywords—invisible hand, Adam Smith, roots and future, fourth term, fifth term, sixth term, seventh term

Cite: Zhang Hanyi, "The Development and Practice of the “Invisible Hand”—An Exploration Starting from Adam Smith," Journal of Economics, Business and Management, vol. 13, no. 2, pp. 199-202, 2025.

Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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