How did Adam smith believe self interest is beneficial for society?

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2026-04-29 09:16

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Adam Smith believed that self-interest drives individuals to pursue their own economic goals, which inadvertently benefits society as a whole. He argued that when people seek to improve their own circumstances, they contribute to the overall wealth and efficiency of the market through the "invisible hand" mechanism. This process leads to increased production, innovation, and the allocation of resources in ways that fulfill societal needs, ultimately promoting general prosperity. Thus, self-interest aligns individual ambitions with the greater good.

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