POL SCI 138E Study Guide - Midterm Guide: Import Substitution Industrialization, Polyarchy, Iphone 6
28 Oct 2015
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Document Summary
Smith explains that private interest leads to the public good and the mechanism that enables this is the division of labor. In his earlier works, theory of moral sentiments, smith states that people natural sympathize with each other. He, however, argues that a more general and reliable nature of human beings is motivation of self-interest, that people constantly work to better themselves and their well-being by maximizing material gain. So in line with self-interest, people divide production the notion of the division of labor and with specialized production, we have high quality goods. An unintended consequence of everyone trying to fulfill self-interest is higher quality goods and innovative means of production in general a collective/public good. Smith concludes that the private market would be the best realm to achieve public good. Even within the same school of thought, theorists part ways from similarities and arrive at different conclusions.
