Compassion vs the invisible hand and capitalism

Compassion and empathy encompassing all beings seems to be the Buddhist ideal. How do Buddhists reconcile this today with Adam Smith's invisible hand? I.e., the idea that following our self-interest will lead to the best (economic) results? Was Buddha wrong or was Smith wrong? Note: It is clear that self-interest and the invisible hand are qualified and moderated in today's capitalist societies. On the other hand, it is still the core of their economic mechanisms and our daily economic behavior. And the communist experiment based on the idea of sharing everything ended up as a large tragedy (not the least for Tibetan Buddhists). UPDATE: Thanks for the interesting spectrum of answers so far. Let me expand: Buddha empathizes with the whole universe and takes decisions that benefit the whole universe most. Extreme altruism based on extreme knowledge leading to the optimal result. While Smith says that following one's egoistic self-interest leads to the optimal (economic) results. And no knowledge of the rest of the universe is needed - just follow your own self-interest. Both are recipes for the behavior of the masses, but Smith's is much simpler to implement. Example 1: If I follow my self-interest and buy a product from the cheapest supplier, I support the most efficient allocation of resources (in an ideal market), the most talented businessmen and managers, etc. Others are incentivized to improve or learn another skill. Should I instead empathize and support them too? Example 2: Communism/socialism tried to replace Smith by planning across the whole economy. An attempt at global empathy and selfless maximization of the common benefit. But it did not work and the result was much worse than Smith's approach. The road to hell was paved with good intentions. Example 3: Google avoids paying taxes in the EU via the Irish trick. Eric Schmidt once commented that they are "proud capitalists". So he/Google believes in doing good via Smith/self-interest. Many other people (in the EU in particular) think that using such loopholes is unethical and bad for the EU economy. What would be the Buddha/Buddhist views in these cases?