What's that principle in capitalism that says that If I look after my own interests, you will benefit anyway?

Answer 1

It is the invisible hand, as named by Adam Smith in the Wealth of Nations. Here's the quote: "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. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it." To use one of his examples, a baker makes bread to make a profit, not because he wants to feed you. You buy the bread because you are hungry, not because you want to support the bread maker's finances. You are both acting in your own self-interest, yet you are both better off by the transaction.

Answer 2

I am not sure of the name of the economic principle, but I think the core was summed up by Charles Wilson, head of General Motors in 1952 and tapped by President Eisenhower to be Secretary of Defense, He stated during his confirmation hearings that he had always believed that what was good for General Motors was good for the country, and vice versa. It is similar to the expression that a rising tide raises all boats -- if everyone looks after their own interests, the economy will prosper, and all will be helped.

Answer 3

From another perspective, the agency theory encourages managers to concentrate on growing the wealth of their owners rather than on individual incentives. That way businesses make more money, managers get rewarded, shareholders receive dividend, the government receives more tax, customers are happy and suppliers' business is guaranteed. In a nutshell, everyone wins! And I think this perfectly fits in with the famous words of Abraham Lincoln - "Think not what your country can do for you but what you can do for your country"

Answer 4

Simply put, in capitalism my goal of earning a living depends on my ability to provide you with goods and services that you value enough to buy from me. I'm looking out for my own interests by benefiting you. If I don't offer a good or service that benefits you, my own interests suffer.

The same applies to employees - I must provide my employer with services he values so he will pay me for them.

Answer 5

Well, I'm not quite sure, but I think this idea was first introduced by Adam Smith in his famous book about the Wealth of Nations. And the principle you refer to is called "the invisible hand" of the market.
Just a guess :o)))

Answer 6

The principle is--To look after my interests I need wealth, to create wealth I have to work, at work I have to compete and improve further.

Answer 7

greed