Economics of Self-Interest

The economics of self-interest suggests that individuals make choices aimed at improving their own well-being, such as earning money, saving resources, or pursuing opportunities. This pursuit guides economic activity, encouraging efficiency and innovation, as people respond to incentives. When individuals act in their own interest, they often unknowingly contribute to the overall functioning of markets, promoting supply, demand, and economic growth. While self-interest drives decision-making, it also interacts with laws, social norms, and regulations to ensure that personal goals align with broader societal benefits.