ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The invisible hand is a mere charade, Marx tells us. What is really at work is something more like an elusive but deadly claw, currently choking the working class but, ultimately, the capitalists themselves. The classical economists are blind to this reality.

Detailed explanation-2: -He believed all countries should become capitalist and develop that productive capacity, and then workers would naturally revolt, leading communism whereby the workers would become the dominant social class and collectively control the means of production.

Detailed explanation-3: -The invisible hand is a metaphor for how, in a free market economy, self-interested individuals operate through a system of mutual interdependence. This interdependence incentivizes producers to make what is socially necessary, even though they may care only about their own well-being.

Detailed explanation-4: -Description: The phrase invisible hand was introduced by Adam Smith in his book ‘The Wealth of Nations’. He assumed that an economy can work well in a free market scenario where everyone will work for his/her own interest.