why is the invisible hand controversial 
critics argue that the idea that actions of self interested profit driven actors will converge on some social optimum is clearly false instead they naturally lead to negative externalities economic and social inequalities greed and exploitation moreover competition driven by the invisible hand can ultimately result in monopolies and the concentration of economic power both of which are undesirable for society other critiques underscore that the concept relies on the assumption that producers can easily switch from producing one type of good to any other depending on relative profitability at a given moment this does not account for the sometimes enormous costs of switching and the idea that people may engage in a business that they enjoy doing or which has been passed down in a family regardless of profitability the bottom linethe invisible hand represents the idea that specialization in production can lead self interested individuals to produce what is socially necessary and for the good of all this is because increased specialization naturally leads to a web of mutual interdependencies for example a shoemaker needs others to produce their house while a homebuilder relies on a shoemaker for shoes on a larger scale market forces and competition motivate producers to make what is most profitable at the lowest cost encouraging technological progress and innovation for the benefit of all 