Why does Smith think that pursuing personal interests is a more effective way to benefit society than trying to pursue the interest of society as a whole?
Answers
Prior Smith not ever expounded on 'free enterprise', this word given by Marx.
At that point, he didn't mull over pursuing your own individual interest is fundamentally more genuine approach to profit culture, however in the event that individuals did as such, it would work out with the goal that an imperceptible hand would deliver and disperse merchandise and ventures to the general population on the loose. With the stipulation that individuals complied with the law. What he protested were government approaches that meddled with exchange since they didn't understand that riches predictable in products and not cash or gold. He was not against private foundations or helping other people out or having the state accommodate open works of a kind.
Smith thinks that pursuing personal interests is a more effective way to pursue the interest of society as a whole because while each person strives to become rich "intending only his own gain", he has to exchange what he owns or produces with other people who value the same. So it results in free market and division of labor which benefits the public as a whole.
An example,an industrialist establishes an industry for his own interest but the same industry gives employment to a number of people and benefits the society as a whole.