In our individual decision in the market

In this reading, a concept that I found interestingwas the “invisible hand” because it helps understand the basics of economy. Theinvisible hand regulates the market economy, but can also applaud us if our individualdecision in the market economy will benefit the economy as a whole. Sometimes self-interestmay seem good for a while, but in the end it will hurt us, unless we know howto use it.

The invisible hand forces us to thinkabout other people. Smith repeated how self-interest was a key in succeeding.He also mentioned how it was the motivation for economic activity. Smithdescribes the “invisible hand” as self-interest and competition in a marketeconomy. We make so many choices in our lifetime.

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From school choice, choosinga major, to going to work, or dropping out of high school, but we mostly doingthings because of self-interest. We put our own personal gain first. Most ofthe stuff we see around us is because of self-interest. As long as we know howto use it, it can benefit us. Buchholz used the example of when Adam Smith madethe vulture sculptures. This made me think of some examples to help me better understandthis concept. For example, every morning you buy donuts and apple cider.

Thedecision of buying this will make the seller and production market better off. Thiswill benefit everyone because the firms and markets that produce are betteroff. Knowing how society can benefit from our self-interest can help us succeed.Competition plays an important role in thisconcept. Self-interest can lead to corruption and increase in prices; however,competition keeps this in check. My customers can leave if I treat them rudelyor increase my prices because my competitors are better at something that I lack.

          I want to apply this in my life as Iam choosing a major. I want to choose something that I’m going to enjoy but willalso be able to help society. Having an understanding of how and why the economyworks can go a long way in whatever field I end up in.


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