This quote reflects a key idea from Adam Smith's The Wealth of Nations (1776), often summarized as the "invisible hand" concept. Smith argued that individuals pursuing their own self-interest in a free market unintentionally contribute to the overall economic good of society.
Key Points:
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Self-Interest Drives Markets: Smith observed that people act out of personal gain—workers seek wages, businesses pursue profit, and consumers want value. This self-interest fuels competition, innovation, and efficiency.
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The Invisible Hand: When individuals freely pursue their own economic interests, they are "led by an invisible hand" to benefit society as a whole—often more effectively than if they intentionally tried to serve the public good.
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Conditions Matter: Smith assumed this works best in a system with:
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Free competition (no monopolies).
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Rule of law (property rights, enforcement of contracts).
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Moral constraints (Smith also wrote The Theory of Moral Sentiments, emphasizing empathy and ethics).
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"The Best Result Comes From Everyone In The Group Doing What's Best For Himself"