Adam Smith Response

I found Adam Smith’s famed theory of an “invisible hand” to be a particularly interesting section of his book. This concept basically backs up the idea that the economy is a self-sustaining entity. “By preferring the support of domestick 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 not 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.” (456) Smith uses this metaphor to describe how the average worker supports the economy simply by thinking in his own self-interests. In his eyes, this is a win-win situation in which both the individual and the society as a whole profit from. The individual attempts to become wealthy, but the only way that this can be accomplished is if he/she exchanges what he/she produces or owns. Smith goes on to say that these people are even more beneficial to society than those who intentionally attempt to support it. “I have never known much good done by those who affected to trade for the public good.” (456)