Re: The obvious problem with invisible hand
As it becomes unprofitable to make a particular product, the businesses that do it go bankrupt, laying off thousands of people, like me.
So what if some other company is making a profit manufacturing a substitute product - the new product is more expensive !!! A more expensive product means that fewer "units" are sold, and fewer units are manufactured. A smaller workforce is needed. Fewer people are hired, or wages decrease. To take a new job may mean that a person has to relocate, or substantially change his lifestyle to survive. Economists cooly refer to this as a re-allocation of human resources.
A lot of suffering and hardship is caused by the so-called Invisible Hand.