Smith's Principle

Smith's Principle, originating from the work of economist Adam Smith, suggests that individuals pursuing their own self-interest can inadvertently benefit society as a whole. This happens because, in seeking personal gains—whether through business or trade—people create goods and services that others need or want. This principle underlines the importance of free markets, where competition drives innovation and efficiency, leading to greater wealth and improved living standards for everyone. Essentially, when individuals act for themselves in a structured economy, it can lead to positive outcomes for the community as a whole.