Adam Smith Greed

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First mentioned in economist Adam Smith’s "The Wealth of Nations," the invisible hand provides the basis for free marketing. The theory behind the invisible hand states that consumers naturally choose which industries exist, causing industries to compete for buyers. Smith argues that by means of this system, the people and the industries help each other unintentionally, as if guided by an invisible hand. As a result, customers are able to purchase needed products while consequently businesses thrive and manufacturers make money. Each party benefits by relying on the selfishness of the other, with no need for outside influences to create this balance. Although governments have attempted to interfere, the invisible hand is ultimately unstoppable …show more content…
Greed is literally programmed into our brains, driving all aspects of humanity, especially economics, even if it does not have a place in religion. In fact, the same neurons in the brain that are stimulated when a person experiences pleasure are activated when humans gamble in the hopes of obtaining more wealth, signifying the role of self-interest in human nature. Though greed is often referred to with a negative connotation, it is fundamental to economic decisions, giving reason to partake in the free market in the first place. As described in the 1987 film "Wall Street," "Greed…is good. Greed is right. Greed works," which is why the invisible hand will never cease to exist. As long as people continue to pursue self-interests, which is biologically imprinted in human nature, the market place will remain a stable force that benefits both the consumers and the …show more content…
As demonstrated by the invisible hand, there will always be a need for certain products, which is what keeps the market going, but supplying shoppers with the goods that they desire is not the industries' intention. In fact, much like consumers, industries create for one purpose: to benefit themselves. Smith explains this in relation to the invisible hand as he wrote, "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. We address ourselves not to their humanity but to their self-love, and never talk to them of our necessities but of their advantage." Because of greed, consumers can trust that industries will continue to create merchandise and industries can rely on the consumers to buy this merchandise. Both benefit the other by helping themselves and if either group were to stop helping the other, then they would be doing harm to themselves as well. As described in The Wealth of Nations, "by directing [an] industry in such a manner as its produce may be of the greatest value, 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
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