Invisible Hand Essay

Submitted By rockmonster
Words: 648
Pages: 3

The Invisible Hand Smith's free market theory is not easy to explain, however, the author does a fine job of simplifying it so almost anybody can understand. The author does a very good job introducing Smith's theory and gets straight to the point by presenting the two main features of the theory in the opening paragraph. This makes it easy for the reader to understand what the following paragraphs are going to be about. He also provides a brief explanation of how these forces regulate the market system, once again creating an easy understanding for the reader. In the first paragraph, the author discusses self-interest. The author then delves into the explanation of what self-interest is and how it affects the economy. He then provides a good example of this through the electronics company. The author then concludes this idea fairly well in the next few sentences, however, the author brings up an entirely new topic in the last two sentences. These have nothing to do with the previous paragraph. The technological improvement idea should be put into another paragraph with a full explanation rather than the one sentence given. The author explores the idea of self-interest leading to efficiency in the next paragraph. He explains that all production factors are used efficiently in order to create maximum profit. However, the author does not go into very good detail at all concerning how these factors are used efficiently. The author also does a poor job trying to link his argument back to the topic sentence; it seems too forced. Then, he diverges into self-interest benefitting

Honor Above All
Kern 2 others as well, yet he leaves the reader with absolutely no explanation of this. The author brings up the next main feature of Smith's argument in the following chapter, competition. Immediately, he explains how competition relates to the self-regulated market and how necessary it is for the market to function. He gives an example of how prices are regulated through the gas stations. This is a very good example that everybody can understand. The author talks about how competition leads to research and development. This could be a different paragraph being as it is a different idea. He gives a great example of Blu-ray players versus other HD DVD players. This explains how products of higher prices need to lower their costs or have a dramatically higher quality than other products in order to sell. This is an easy concept to grasp and developed well through this paragraph. The author finally…