In the following passage from The Wealth of Nations, Adam Smith created the most famous metaphor in all of economic literature – the invisible hand – which, Smith held, guided individuals, in pursuit of their self-interest, to promote the good of the whole society.
The annual revenue of every society is always precisely equal to the exchangeable value of the whole annual produce of its industry, or rather is precisely the same thing with that exchangeable value. As every individual, therefore, endeavors 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 it. By pursuing his own interest he frequently promotes that of 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 affection, indeed, not very common among merchants, and very few words need be employed in dissuading them from it.
http://www.forexforexforexforex.com/
- Wine-Tasting: A Frugal Hobby or Not? For Valentine's Day this past weekend my wife and I headed down to wine country - Paso Robles to be exact. Because we have a friend named Justin we found Justin Vineyards a natural place to start. We got there...
- The Life of a Coin Collector Coin collectors lead interesting lives, dominated by their thoughts of history through the currency used at different times. These individuals are going to spend large amounts of their income, both happy and excited to spend the money when they find...
- Advertising Plans- Understanding Niche Conception. Countless managers think that while mounting the small size trade advertising tactics, such should rather be dealing with widest available market. They are terrified to chase a narrow niche for the reason that they fear that they might let go...
- My Life as a Volunteer Tax Preparer - Week 6 This was yet another unique week of experiences for me in the volunteer tax preparer office. I had 5 appointments plus I picked up a 6th so one of the other volunteers could leave early. This 6th appointment was the...