Self-Interest in the Marketplace
“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.” This is Adam Smith’s famous quote on the very basic of business motive and every individual involved in the transaction making an earning. Smith argues how one is essentially motivated to go on a venture or transact for self-interest.
Self-interest, very basic motive
Self-interest in this regard by Smith is basically argued that all of the individuals are at the very basic level are motivated to participate in a monetary transaction or other trades for the sake of making a living. Making a living or a good living is basically a motive to acquire and maintain the basic needs in ...view middle of the document...
The buyer may not necessarily buy the product just because it is just a good product, but also that it solves their need or want and the maker is trying to earn a living like everybody else. There is a chain to it – just like a food chain – it is a chain. John buys the raw material from Doyle to finish making a beverage that in return will be bought by customers, by more Doyles. Those customers are a provider (seller) of another product or service to another buyer who are their customers. Again, a cleaner doesn’t offer to clean your house just because they want to be nice, but at the same time to earn something in return to contribute to his/her good living.
More than just a Business
It is not necessary to start a business to sell and earn that basic and good living; rather it is a service you may even provide to an employer in return for monetary value to reach the goal. That being said, since Smith’s example and concept is from a very traditional and an older generation, today it may apply to even an IT analyst at Amazon Inc. However, businesses don’t exist to solely make a good living but to make profits in order to survive, thrive, or succeed and expand further for good living to better living to luxurious living. I
Smith’s definition and explanation of the self-interest in the marketplace may have been regarded as the concept that greed is good. However, Smith simply puts it out there that why we are essentially motivated to trade or sell our services or products is to earn a living in return that will satisfy the basic needs. Again, the concept introduced by Smith of self-interest in the marketplace tries to explain the very basic motive to make a good living, continue the chain for not others but benefit only but for your own as it affects everyone.