Adam Smith was against the collective interest or gave little appreciation because his emphasis was on personal interest. a) true; b) false; d) none
The correct answer and explanation is:
Correct Answer: b) false
Explanation (300 words):
Adam Smith, often regarded as the father of modern economics, is best known for his work “The Wealth of Nations” (1776). While he did emphasize personal interest—famously stating that 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—this does not mean he was against collective interest or gave it little appreciation.
Smith believed that individual self-interest, when pursued within a framework of fair competition and justice, leads to benefits for society as a whole. This is the essence of the “invisible hand” theory. According to this idea, individuals seeking to maximize their own gain in a free-market economy unintentionally contribute to the overall economic well-being of society.
However, this doesn’t imply that Smith was blind to collective interests. In fact, he recognized the importance of public institutions and government in providing goods and services that markets could not efficiently supply—such as education, defense, and infrastructure. He also warned against monopolies and the undue influence of powerful business interests over government.
Smith’s moral philosophy, as outlined in his earlier work “The Theory of Moral Sentiments” (1759), also emphasizes sympathy, justice, and the well-being of others. He was deeply concerned with ethics and the social consequences of economic behavior.
Therefore, to say that Adam Smith was “against the collective interest” or gave it little appreciation is a misrepresentation of his views. He believed that a well-regulated system that allowed individual interests to flourish could also serve the greater good, but he did not advocate selfishness at the expense of society.
Conclusion:
The statement is false. Adam Smith emphasized personal interest as a driver of economic activity, but he clearly saw collective interest and moral responsibility as essential parts of a healthy society.