Question #0891e
1 Answer
May 9, 2017
It is based on fair competition
Explanation:
Adam Smith's invisible hand idea was based on the assumption that the market could regulate the economy. A fair and open competition was required. He exposed these ideas in his book "The Wealth of Nations" published in 1776. He is therefore often regarded as the father of "laissez faire" economics and inspired many thinkers such as Ricardo and Marx.
He is considered a minor thinker by some scholars such as Schumpeter or Murray Rothbard. His idea of "fair and open competition" is the very opposite of the concepts of monopoly or state intervention in the economy.
