Consumption and Management

5

The macro-control system on the consumption market

Early economic theory emphasized that market regulation and control is performed by an ‘invisible hand’. The ‘invisible hand’ was proposed by Adam Smith (1723–1790), the 18th century English economist, in his book The Theory of Moral Sentiments. Initially the phrase meant that individuals consider only their own interests in their economic lives and are driven by an ‘invisible hand’: only through labor division and market effect can the purpose of national prosperity be achieved. Later on, it was interpreted as meaning that the government should not interfere with national economic development, which should depend on social demand. This kind of social demand is considered an ‘invisible hand’ ...