chap4 - Chapter4:TheMarketSystem What How Forwhom What It...

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    Chapter 4: The Market System
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    Three fundamental questions: What? How? For whom?
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    What? In the words of Adam Smith: 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 self-interest. (Adam Smith, Wealth of Nations, Book I, Chapter I) [A producer,]...by directing that industry in such a manner as its produce may be of the greatest value, 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. I have never known much good done by those who affected to trade for the public good. It is an affectation, not very common among merchants, and very few words need be employed in dissuading them from it. (Smith, Book IV, Chapter II)
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    Consumer sovereignty?
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