The phrase "invisible hand" is associated with the idea that individuals pursuing their own self-interest can inadvertently contribute to the overall good of society. This concept, introduced by economist Adam Smith, suggests that when individuals make choices based on personal gain, their actions can lead to positive outcomes for the broader community. For example, a baker who wants to earn a profit will provide bread that customers desire, thereby meeting the needs of others while also fulfilling their own financial goals.
This phenomenon illustrates how personal motivations can align with societal benefits, effectively serving as a guiding principle in free-market economies. It emphasizes the notion that, rather than an intentional design, social benefits can emerge organically from the collective actions of individuals acting in their self-interest. This contrasts with other options, which focus on specific economic theories or structural agreements that do not encapsulate the broader implications of self-interest in society.