Question

Why did Adam Smith believe it was better to pursue personal interests, rather than the general interest of a society?

Answer 1

In his most famous work, Wealth of Nations, Adam Smith discusses how the economy benefits tremendously when individuals focusing on self interest rather than the general interest of society.

The idea of self-interest revolves around an individual making a decision based on what is best for them on an individual basis. Smith argues that this is the most beneficial method because individuals would focus on making as many goods as possible to sell. This would benefit society as a whole, as there would be enough resources for everyone

. Along with this, focusing on your own financial gain will inadvertently help everyone. In order to have a successful business, you must keep your prices competitive. These competitive prices allow the business owner to have success while also giving the best deal to the consumer.