government interference

2 posts / 0 new
Last post
Colin Broussard
Colin Broussard's picture
government interference

Hi jason,

I have been reading a lot of financial articles and the term "invisible hand " keeps coming up.

Is this theory relevant in nowadays ? economy without government interference ?

Jason Pride
Jason Pride's picture

Hi Colin,

The invisible hand of the market refers to the forces that act on the market at all times. It is how the market as a whole responds to various events. Since these events include political changes, governmental interference, changes in demand, etc, I would say that yes this is still relevant today. While a government may impact the market, the invisible hand will help it find a new equilibrium.