The visible hand comes from another British economist, Keynes's book General Theory of Employment, Interest and Money, which refers to the state's intervention in economic life.

Visible hand generally refers to the macro-control or management of the government, also known as "visible hand", which is a symmetrical formulation of "invisible hand".

Its means and function are to point out the goals, tasks and key points of economic development by making plans (economic means); By making laws and regulations (legal means), regulate the behavior of participants in economic activities; By taking administrative measures (administrative means) such as orders, instructions and regulations, economic activities can be directly and quickly adjusted and managed. Its ultimate goal is to remedy the failure of the invisible hand in regulating microeconomic operation. If the government does not play a good role and does not follow the laws of the market, it will also have negative consequences.

Adam Smith is one of the greatest thinkers in the history of economics. He insisted that what philosophers should really worry about is the economy: how money is earned and how it is spent.

It is generally believed that his economics is as important as Newton's gravity theory in physics, and it is a great concept that Adam Smith dedicated to mankind.

Adam Smith believes that the development of capitalism is "guided by an invisible hand". He pointed out that under the spontaneous action of the market, when everyone strives to pursue his own goals, he seems to be led by an invisible finger to realize public interests.

Adam Smith, while advocating that the "invisible hand" acts as the main regulator of social economy, thinks that the economic function of the government is limited, and it is nothing more than acting as the "night watchman" of the economy.

However, with the development of capitalism to the advanced stage, various problems have emerged, which the market itself cannot overcome. This is the so-called "market failure".

Baidu encyclopedia-invisible hand

Baidu Encyclopedia-Visible Hands