Suppose if we live in the time of Smith, in the middle of the 18th century, when people began to study political economy. Many discussions on the production and distribution put emphasis on social tasks. For traders said that should decide ‘right price’, to not require to take interest on loans and to perform various social tasks such as caring for the poor and those with limited opportunities. Traders operating differently from these social norms often punished for the reason that they put their personal interests above that of other people. Smith and his colleagues studied and presented that although a businessman is affectionate by personal interest, often his actions are in the interest of others. Nowadays it is called the invisible hand theorem, which means that in the system of private property the individuals are attracted by an invisible hand to advertise the interests of others even though they actually act for their personal interest. techjunkien
To act for personal interest means that you are doing only a choice regarding interests, and desires that you have. If you desire to help others, then this choice is in your personal interest.
Personal interest in economics and politics
People are attracted by personal interest, whatever they are: consumers, teachers, businessmen, employees, voters, politicians or public officials. Desires of an individual do not change with his movement to another work or job position. Assume that a businessman who has been successful as a director of a large company change workplace and it is appointed as head of a public institution.
Can be found in this case any reason to believe that this individual will change its character? Now the work conditions under which the individual work will change, and this of course will be accompanied by some changes in his behavior. Basically it is the same person. techjunkien
In politics, this approach is motivated in the same way as motivated in business a simple idea. It is part of our common sense. Individuals engaged in business, just like other people around, often sacrifice their welfare interests for of others, but of course not to excess the normal logic. In this context, people expect that authorities to do the same thing. The important point of this discussion is to show how these individuals are charitable. However be charity feeling size it will always have different views of who should help and who really belongs to take help…