As every individual, therefore, endeavours as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. It is an affectation, indeed, not very common among merchants, and very few words need be employed in dissuading them from it.
About this quote
- What does it mean?
- Individuals pursuing their own gain often unintentionally promote society's benefit through an invisible hand mechanism.
- In plain terms
- Trying to help yourself often helps society too, without intending it.
- What can you take from it?
- Self-interest can lead to positive social outcomes unintentionally.
Where it applies
Putting it to work
Questions to consider
- Does self-interest always help society?
- Is the invisible hand reliable?
Another view
It assumes markets always correct themselves without regulation.
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But what all the violence of the feudal institutions could never have effected, the silent and insensible operation of foreign commerce and manufactures gradua…
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Permalink to quote #13 All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind.
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