I, Pencil – a video on the hidden benefits of free markets

This post contains a video called “I, Pencil”.  The video shows how the world that we live has evolved into the amazing place it is due to all of us working towards our own self interest.  By working  for our own self interest, we have created an incredible world where we all get to choose our wants and needs.  The private markets and the companies that operate in them capture the human intelligence and physical labor along with invested capital and technology to produce an ever improving world.

The private sector consistently makes value judgments to where best to allocate resources to best serve themselves and their owners by servicing the needs of their customers.


These market forces result not from a central decision-making process but by the “invisible hand” that has produced this miraculous world which continues to improve the lives of millions each day.  In the near future this invisible hand will bring medical breakouts and self driving cars to name just a few.

Think how overwhelmed humans of just 100 years ago would be if they live in today’s world with the incredible availability of items from all areas of the world.  Our living conditions have never been better.

Click on this 6 minute video below to learn about the making of a simple ordinary familiar pencil.  It demonstrates what resources are necessary to create this simple instrument and how individuals around the world benefit for themselves without necessarily caring about this consumer product.

It is based on Leonard Read’s classic 1958 essay “I, Pencil” to explain Adam Smith’s contribution regarding the invisible hand of the free market.  It will help explain the concept to children as well.

I, Pencil

 If you enjoyed this article,  CLICK HERE to subscribe to free updates from “Roots of Wealth”.

The foregoing content reflects the opinions of Crimmins Wealth Management and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.

About Dan Crimmins

Dan Crimmins, co-founder of Crimmins Wealth Management, is a financial coach and fee only financial planner. Have a financial question? ASK DAN


Enter your email address to sign up for free updates from Roots of Wealth and build a strong financial foundation! (we respect your privacy)

, ,

No comments yet.

Leave a Reply