RAYMUND B. HABARADAS
Adam Smith has two hands. More popularly known as the “invisible hand,” he introduced the theory in “The Wealth of Nations.” This refers to the pursuit of self-interest by individuals, which, in a free market, would drive them to create profit-driven organizations that lead to efficient economic outcomes. Less known is the second invisible hand, which refers to individuals’ sense of sympathy toward others. In “Theory of Moral Sentiments,” he acknowledges how human beings’ sense of attachment and desire to help others can, likewise, influence their economic behavior.