Question

"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. By pursuing his own interest he 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." – Adam Smith what this quote means

Answer 1

This quote highlights Adam Smith - Self Interest, Free Reign, Invisible Hand theories

Step-by-step explanation:

Adam Smith is the Father of Economics.

His self interest theory states that : Individuals working for the best of self interest implies maximum welfare for society as a whole.

Hence, the free reign idea suggests that people as 'self interest' guided rational economic agents should be left free. The invisible hand of market restores any distortions.

Government intervention is considered to be not only unnecessary, but distortionary.