The Market as a Social Institution

The Market as a Social Institution

Question

How do the sociologists interpret the phrase "the invisible hand" coined by Adam Smith, the fountain-head of contemporary economic thought?

Answer

Sociologists interpret that phrase in the sense of being buyers and sellers part of society with an appropriate hierarchy and system; series of individual exchanges or trasactions automatically create a functioning and ordered system. Each person looks only to his own self interest but in the pursuance of this self-interest, society interests appear to be looked after in an automatic way.

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