Monday 25 August 2008

Invisible hand of God

The invisible hand is a metaphor coined by the economist Adam Smith (UK, 1723-1790). Adam Smith mentions the metaphor in Book IV Chapter 2 of "An Inquiry into the Nature and Causes of the Wealth of Nations." Smith argued that each individual maximizing revenue for himself maximizes the total revenue of society as a whole in a free market, through a principle that he called “the invisible hand".
I feel the traffic has become less nowadays, when I drive highways. The sales of cars fall rapidly all over the world. One of the reasons must be high oil price. They say that it is mainly caused by speculation and mentality. But the demand and supply balance, or "invisible hand" may cause these general trends, I think. Besides BRICs, the developing countries will need the materials more and more. Beijing Olympic Games was over successfully. I hope the one world will pursue sustainable growth.

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