Economists -- Great Britain -- Biography; Smith, Adam, 1723-1790
Smith thereupon asks whether these protective measures, by giving an
artificial direction to industry, are likely to be of general benefit to
society. The first answer is that in business every man seeks his own
advantage, that every man knows his own business best, and that “the
study of his own advantage naturally, or rather necessarily, leads him
to prefer that employment which is most advantageous to society.” Though
intending only his own gain, he is “led by an invisible hand to promote
an end which was no part of his intention.” Indeed the selfish
trader—the economic man, if you like—promotes the interest of society
far more effectually than those who affect to trade for the public good.
Is it not evident that the individual himself, though he may make
mistakes, can judge best how and where to employ his own labour or
capital? The statesman or lawgiver who attempted to direct private
people how to manage their business and spend their money would not only
be overloaded with work, but would be assuming an authority “which could
safely be trusted, not only to no single person, but to no council or
senate whatever.” From this consideration we pass almost insensibly into
the argument from the division of labour.
“It is the maxim of every prudent master of a family never to attempt
to make at home what it will cost him more to make than to buy. The
taylor does not attempt to make his own shoes, but buys them of the
shoemaker. The shoemaker does not attempt to make his own clothes, but
employs a taylor. The farmer attempts to make neither the one nor the
other, but employs those different artificers. All of them find it for
their interest to employ their whole industry in a way in which they
have some advantage over their neighbours, and to purchase with a part
of its produce, or what is the same thing, with the price of a part of
it, whatever else they have occasion for.
“What is prudence in the conduct of every private family, can scarce
be folly in that of a great kingdom. If a foreign country can supply
us with a commodity cheaper than we ourselves can make it, better buy
it of them with some part of the produce of our own industry, employed
in a way in which we have some advantage.”
Public-domain text, read in full here on John Shaqi.
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