Answer:
Smith found that self-interest and rational self-interest were powerful motivators of economic activity.
Adam Smith was one of the first economists to explain how self-interest and rational self-interest in a free-market economy can lead to overall economic well-being.
Explanation:
Smith argued that by giving everyone freedom to produce and exchange goods as they pleased (free trade) and opening the markets up to domestic and foreign competition, people's natural self-interest would promote greater prosperity than with stringent government regulations .
Self-interest refers to actions that elicit personal benefit. Adam Smith, the father of modern economics, explains that the best economic benefit for all can usually be accomplished when individuals act in their own self-interest. His explanation of the Invisible Hand reveals that when dozens or even thousands act in their own self-interest, goods and services are created that benefit consumers and producers.
