Adam Smith- Excerpt from Wealth of Nations

Meaning of the following excerpt: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest."

Businesses acting in their own interests expect something in return for their services.

"The natural desire of every individual is to improve his own condition (life).For example, it is not because of the benevolence (kindness) of the butcher, the brewer, or the baker that we expect our dinner, but from their regard for their own self-interest. It is for his own benefit, and not that of the society, that the butcher is thinking about when he slaughters his pigs for meat. His self-interest leads him to choose that employment (job) which is also helpful to society, but he intends (desires) only his own gain. If people were not willing to pay the butcher good money for his meat, then the butcher would not care to slaughter his pigs."

Examples of self-interest motive

Background information: This passage, about self-interest, is from Adam Smith's The Wealth of Nations, which was published in 1776. "Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society which he has in view. But the study of his own advantage naturally leads him to prefer that employment which is most advantageous to the society." According to the passage, how do people pursuing their own self-interests benefit society?

The highest-paying jobs are also those that benefit the society the most.

The 3 main ideas behind capitalism as defined by Adam Smith are

competition, self interest, and laissez-faire.

" Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society which he has in view. But the study of his own advantage naturally leads him to prefer that employment which is most advantageous to the society. Background information: Adam Smith published The Wealth of Nations in 1776. In this passage, he discusses the principle of self-interest in a capitalist system. According to Smith, what is the primary economic motivation for most people?

to find employment where they can make the most money