Adam Smith Quotes

By pursuing his own interest (the individual) frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good.

People who intend only to seek their own benefit are “led by an invisible hand to serve a public interest which was no part of” their intention. I say that there is a reverse invisible hand: People who intend to serve only the public interest are led by an invisible hand to serve private interests which was no part of their intention.

The basis of the free market is anytime you can generate revenue or profit, you've created value in excess of the resources you consume in a society. That's probably the most unbiased utility function there is, as opposed to someone's opinion.

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 his view. But the study of his own advantage naturally, or rather necessarily leads him to prefer that employment which is most advantageous to the society.

Every individual necessarily labors to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it.... He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.

That's the trick of free market economic theory: it doesn't just ask you to only be selfish and not care about others. It tells you that by being selfish, you are helping others. And, in fact, by trying to directly help others, you will hurt them.

Let's take Adam Smith, the patron-saint of capitalism, what did he think? He thought the main human instinct was sympathy. In fact, take a look at the word "invisible hand." Which, of course, you learned about, or you think you've learned about. Take a look at the actual way in which he used the phrase. There is almost no relation to what is claimed.

He is led by an invisible hand to promote an end which was no part of his intention

The effect of capitalism is to steer human selfishness so that, through the invisible hand of competition, the energies of the capitalist produce the abundance from which the whole society benefits.

I am a believer in Adam Smith, who says that if you look at something that really contributes value to society, and you can deliver it at a reasonable price, then society will recognise that at some point because rational behaviour will come into play.

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 interest.

The invisible hand of the market always moves faster and better than the heavy hand of government.

… a good society ensues from the selfish pursuits of individual men.

That invisible hand of Adam Smith seems to offer an extended middle finger to an awful lot of people.

The market is the best garden.

Adam Smith's 'invisible hand' is not above sudden, disturbing, movements. Since its inception, capitalism has known slumps and recessions, bubble and froth; no one has yet dis-invented the business cycle, and probably no one will; and what Schumpeter famously called the 'gales of creative destruction' still roar mightily from time to time. To lament these things is ultimately to lament the bracing blast of freedom itself.

Markets are the best way to allocate resources.

Capitalism encourages entrepreneurs to act with consideration for others even when their ultimate motive is to benefit themselves.

The public good is promoted best by people pursuing their own private interests. This bothers some people because they're more concerned with motives than with results.

The market economy is the social system of the division of labor under private ownership of the means of production. Everybody acts on his own behalf; but everybodys actions aim at the satisfaction of other peoples needs as well as at the satisfaction of his own. Everybody in acting serves his fellow citizens.

What's the single most important thing to learn from an economics course today? What I tried to leave my students with is the view that the invisible hand is more powerful than the hidden hand. Things will happen in well-organized efforts without direction, controls, plans. That's the consensus among economists. That's the Hayek legacy.

Laissez-faire, supply and demand-one begins to be weary of all that. Leave all to egotism, to ravenous greed of money, of pleasure, of applause-it is the gospel of despair.

What America needs is not Robin Hood but Adam Smith.

Adam Smith is misread as being amoral precisely because people don't read his first book, because they don't read 'The Theory of Moral Sentiments.'