Advantages Of Invisible Hand Theory

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Register to read the introduction…Every individual works for his own benefit and personal achievement, leading to the betterment of the society as a whole without this individual intending to do so. In addition, government interventions or regulations are not required since the invisible hand guides the economic growth.
“It is not from the generosity of the butcher, the brewer or the baker, that we anticipate our dinner, but from their regard to their own self interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.” (Smith 1776:13)
This type of economy could be regarded as an ideal economy because people are not restricted by any rigid law and have the right to ownership of means of production.

Karl Marx in his Theory believed that Adam Smith’s theory will lead to instability, struggle and decline in economy. He alleged that the capitalist’s profit is gotten from exploiting the workers by underpaying them for the value which they are creating, thereby leading to society of few affluent capitalist and a group of poorly paid and poor
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(ed. Fijnaut and Jacobs (n.d.:93))
“People are involved in organized crime because of economic benefits that can be derived from such activity and not because of their cultural ancestry or basic predisposition to criminal activity. In short, criminal activity is a way to make money. Political corruption occurs only to gain and maintain the economic benefits and not as an end in itself…” David Caputo cited in (ed. Fijnaut and Jacobs (n.d.:93)),
The influence organized criminal in this society on the public officials, imposes great violence by virtue, “visible hand” forces to control the illicit market. However, Reuter as cited by Sutherland, Cressey & Luckenbill, (n.d) noted that other forces different from the “visible hand” are in operation. These “invisible hand” forces self interest and expertise makes control of illicit market unattainable by any individual or faction. Observing that illicit markets were being supplied by monotonous, localized, disjointed and transient enterprises, he concluded that “invisible hand” rather than “visible Hand” fundamentally shape the organization of illicit

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