Why does Adam Smith think that pursuing personal interests is a more effective way to benefit society than trying to pursue the interest of society as a whole?

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2026-06-02 03:55

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Adam Smith argues that when individuals pursue their personal interests, they inadvertently contribute to the overall good of society through the "invisible hand" of the market. He believes that individuals are more motivated and efficient when acting for their own benefit, leading to innovation and productivity. This self-interest drives competition, which can result in better products and services for everyone. In contrast, trying to directly pursue societal interests often leads to inefficiency and unintended consequences.

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