Introduced in The Wealth of Nations, this concept suggests that individuals freely pursuing personal wealth unintentionally allocate resources efficiently for the public good.

By specializing in distinct steps, like drawing the wire or fitting the head, a small team could produce thousands of pins daily instead of just a handful.

Smith famously noted that tradespeople provide goods not out of benevolence, but because selling food earns them a living to support their own needs.

This idea challenged the prevailing mercantilist belief that a nation's prosperity came from hoarding gold, instead focusing on a country's total economic output.