Adam Smith Wealth Summary

Smith wanted people to practice thrift, hard work, and enlightened self-interest. He thought the practice of enlightened self-interest was natural for the majority of people. In his famous example, a butcher does not supply meat based on good-hearted intentions, but because he profits by selling meat. If the meat he sells is poor, he will not have repeat customers and thus, no profit. Therefore, it's in the butcher's interest to sell good meat at a price that customers are willing to pay, so that both parties benefit in every transaction. Smith believed that the ability to think long-term would curb most businesses from abusing customers. When that wasn't enough, he looked to the government to enforce laws.

Read more: Adam Smith and "The Wealth