Monday, February 27, 2012

The Invisible Hand

Adam's theory of the invisible hand is one that I agree most with in that this is the way our society is today and has been for a while. His theory is that of supply and demand. This means if the price of a product is popular and is begging to sell largely, of course the price is going to raise in order to make more money. For example, if the demand is cars (like it is for society today) and the majority of people feel the need to have a car then the supply of gas based on the demand of cars is going to be either a reasonable amount or higher. As a result, the gas companies begin to make more money because of the raise in price for gas BECAUSE of the demand of cars from people, allowing people to earn more money, take more "vacation" days, using a car, and it leads into one big circle again. This is how the majority of society industrialization works today.

No comments:

Post a Comment