the invisible hand

     The "invisible hand" is a phrase from an economist who lived long ago--a couple of hundred years ago--at about the time of the American Revolution. The "invisible hand" was his description of what makes the economy "do things". The economy supposedly corrects itself--when there is a depression, or inflation, it is because the economy is in the process of righting itself--as if the economy were a living organism, with a will of its own. The notion of the "invisible hand" is part of a theory of economics still referred to as "laissez-faire"--a French phrase that literally means to allow to do, or, more appropriately--to let go or "let it be".
     The economists who believe in the "invisible hand", or in "laissez-faire" economics think that it is wrong to interfere in the workings of the economy--that any intervention would only make things worse, and perhaps throw  a wrench in the working of the "invisible hand".  President Hoover believed this at the beginning of the Great Depression of the 1930's. To do anything about the unemployment and bank failures might only make things worse, so he did nothing.  President Franklin D. Roosevelt did not agree, and was willing to try all kinds of programs to improve both unemployment and the economy in general.
     This remains a current issue because many people still believe that it is wrong to attempt to regulate the economy. They believe that "market forces" alone will make the best economy--what people are willing to do with their money, absent any government regulation. Other people believe that the government should be more involved in the economy than it is--by guaranteeing people jobs, for instance. If you watch C-Span (the channel that shows Congress in session)--you will notice that many of the arguments are about these two very different views of economics.