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When the hand on the economic rudder trembles


When the hand on the economic rudder trembles
31 January 2021 - 00:00 By Makhudu Sefara
In The Theory of Moral Sentiments, philosopher and economist Adam Smith coins a phrase, the invisible hand , to describe the unintended, but welcome, economic benefits that accrue to society from an individual s pursuit of self-interest.
When an entrepreneur sets up a firm and pursues maximisation of profits, as all business people do, society derives some benefit, even if this is unknown to or misunderstood by the entrepreneur.
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