sixty second adventures in economics
number one
the invisible hand
economy is a tricky thing to control
and governments are always trying to figure out
how to do it
back in 1776
economy Adam Smith
shocked everyone by saying that
saying that what government should actually do
it just leave people alone
to buy and sell freely among themselves
he suggested that if they just leave self interested traders
to compete with one another
markets are guided to positive outcomes
as if by an invisible hand
If someone charges less than you
customers will buy from them instead
you have to lower the price
or offer something better
whenever it people demand something
they would be supplied by the market
like spoilt children
I mean this case everyone is happy
later free marketeers like
offspring economy for Friedrich higher
argued that this hands off approach
actually what's better than any kind of central plan
but the problem is
economies can take a long time
to reach that equilibrium
and may even stall along the way
and in the meantime you looking at little frustrated
which is why governments usually end up
taking things into their own miserable hands instead