The Invisible Hand in Economics and Public Policy

The invisible hand has evolved from its original meaning in modern economics and public policy, signifying that the market can resolve certain issues without intervention. This concept has been underappreciated, albeit it should not be overappreciated. The migration of hundreds of millions of Chinese citizens from rural to urban areas and its impact on the availability of pencils exemplify the invisible hand at work. While it is a remarkable phenomenon, it does not solve every problem and should not overshadow the need for legislation and regulation in addressing other issues like pollution.