Question

In the following statement, Adam Smith comments on the individual who uses domestic industry and labor. Use Smith's statement to answer the question below:

"...he intends only his own security... 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... By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it."

Source: An Inquiry into the Nature and Causes of the Wealth of Nations

How does Smith's view of the economy expressed in this excerpt compare to Owen's?

Both believe individuals acting in their self-interest will lead to economic equality.

Both believe individuals acting in their self-interest will lead to economic inequality.

Smith believes individuals acting in their self-interest will lead to the maximum social benefit, while Owens does not.

Owens believes individuals acting in their self-interest will lead to the maximum social benefit, while Smith does not.

Answer 1

The right answer for the question that is being asked and shown above is that: "Owens believes individuals acting in their self-interest will lead to the maximum social benefit, while Smith does not." That is how Smith's view of the economy expressed in this excerpt compare to Owen's

Answer 2

The answer is:

Smith believes individuals acting in their self-interest will lead to the maximum social benefit, while Owens does not.

Robert Owen, was one of the founders of the utopic socialism, which stated that self interest didn´t lead to social benefit. He promoted cooperatives and working class rights, but eventually he was bought out of his business because his partners didn´t like his ways of doing things.