The significance of A. Smith’s “invisible hand” in developing economic science

Abstract

A. Smith's expression “the invisible hand” has been widely used for more than a century among both theoretical economists and business people. It is well known and widely used in virtually all social sciences, in fiction and art, and in the daily lives of citizens of many countries whose economies are developing according to market principles. It is no coincidence that it has become a metaphorical reflection of the real and imaginary omnipotence of the market, a kind of perpetual motion machine and a reliable advocate of market civilization. The variety of phenomena and factors accompanying capitalist development from manufactory period to modern digital revolution provides rich material for expanding the understanding of the “invisible hand”, its place and role in both economy and economic science. The purpose of the article is precisely to reveal the modern sound of this brief historical expression. In essence, the role of the market has not changed in the 21st century. Its scale has grown to a global one, with new elements of market mechanism and challenges to its effectiveness.