The Wealth Of Nation By Adam Smith

1063 Words5 Pages
According to Adam Smith’s, The Wealth of Nation, the best economic benefits for all can be achieved when an individual concerned with their own interests. Self-interest is when an individual makes decisions that are in their own benefit or best interest over any other parties involved (Book 1 chapter 2 §2). Smith argues that the idea of individual continuously make decisions that benefits their own situation will eventually lead to achieving better quality of life for everyone. Hence, people wouldn’t have to depend on other to make the decisions for them and encourages division of labour within the society (Book 1 chapter 2 §3). Withal the theory of self-interest is alike with selfish in our words, therefore the following essay explores how these two concepts differ. Nevertheless, Smith is also aware that the theory of self-interest may cause dispute between master and workers, thus he suggests a resolution to this kind of dispute. Accordingly, along with an example of worker’s dispute, this essay evaluates whether the resolution that Smith suggested is feasible in the modern society. Smith states that self-interest is the most essential component for encouraging general good for both the individual and the…show more content…
However, the concept of self-interest differs to our understanding of selfishness, as it is considered as the motive that directs one’s action. When everyone achieved what they want, Smith states that it will also lead to the general good of a society. Although Smith highlights that there might be dispute regarding the master and worker’s relationship, he suggested that the problem can be solved when the workers have enough pay. According to a real life worker dispute example, I suggest that it is difficult to make Smith’s theory in practice, as the master often have advantages in the disputes and the worker’s right is often being
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