what is the invisible hand 
the invisible hand is a metaphor for the unseen forces that move the free market economy through individual self interest and freedom of production and consumption the best interests of society as a whole are fulfilled the constant interplay of individual pressures on market supply and demand causes the natural movement of prices and the flow of trade the term invisible hand first appeared in adam smith s famous work the wealth of nations to describe how free markets can motivate individuals acting in their own self interest to produce what is societally necessary investopedia madelyn goodnight