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In which two books did Adam Smith use the phrase invisible hand?
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Adam Smith
Adam Smith, paste medallion by James Tassie, 1787; in the Scottish National Portrait Gallery, Edinburgh.
The Scottish philosopher and economist Adam Smith used the phrase "invisible hand" in the following two books:
- The Theory of Moral Sentiments (1759): In Part IV, chapter 1, Smith uses the metaphor to describe how wealthy individuals, while pursuing their own interests, are led to distribute necessities in a way that benefits society.1
- An Inquiry into the Nature and Causes of the Wealth of Nations (1776): In Book IV, chapter 2, Smith employs the phrase to explain how individuals who prefer domestic over foreign investments are led to advance the public interest through their own self-interested actions.1