Business Glossary

description of business motivation in a free economy. Reference to the doctrine of Adam Smith that the pursuit of selfinterest promotes the public good. Because "the annual revenue of every society is always precisely equal to the exchangeable value of the whole annual produce of its industry," then each person, in "directing [his] industry in such a manner as its produce may be of the greatest value," is "led by an invisible hand to promote an end which was no part of his intention. . . . By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it." The invisible hand doctrine is one of the cornerstones of the free enterprise system.