In The Wealth of Nations, Adam Smith expounds the principle that self-interested market actors unknowingly maximize the welfare of society in its together. This idea of ​​the “invisible hand” was born in 1776 and constitutes the basis of the current functioning of our economy. When a business provides goods and services to a customer, it is never out of the goodness of their heart, but out of greed. Greed is what motivates companies to provide better services and products. Without greed, the creation of companies like Apple, Amazon and Microsoft would not have been possible. Instead, the world would have been left with non-profit organizations, which did not bother to elevate their products and services due to a lack of competition and desire to be the best. Ultimately, this explains why greed is good for the economy and why people these days can't live without it. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Greed is everywhere and for the most part, greed is good. For example, Monta Vista students are inadvertently greedy, seeking more knowledge and trying to get the best grades possible. Does this greed make them a bad person? Of course not, in fact, it's those with the best grades and a thirst for knowledge who contribute the most to society. Only the classical definition gives greed a negative connotation, defining it as "intense selfish desire" when in reality it wants more than is necessary. This relates to rational self-interest, one of the three fundamental principles of economics. People want to reduce costs and maximize profits, getting more than what is needed for sustainable living. If greed were truly a bad thing, people wouldn't need incentives or benefits, they would give out of the goodness of their hearts. However, the world only works with money and other incentives in mind. Money, the most important incentive, is what motivates these companies to produce products that can compete with other companies and generate the most revenue. A simple example includes a nonprofit organization and a for-profit business. Both entities offer the same service, namely lifeguard training. The nonprofit will offer its mediocre services for free out of the goodness of its heart, but the for-profit company will be competing with other businesses and, therefore, improving its services to have the highest chance of convincing. the client's wallet. The company doesn't necessarily care about the customer, it only cares about their money. This ties in with Smith's "invisible hand" principle, as corporate self-interest unknowingly improves the quality of lifeguard training, as companies will always attempt to compete and surpass the quality of their services. Keep in mind: this is just a sample. Get a custom paper now from our expert writers. Get a Custom Essay This is why the quality of goods and services has improved year by year. Companies compete in a particular area of ​​interest and rely on their ideas to be as successful as possible. Many entrepreneurs apply this philosophy to maximize their chances of creating a profitable business. Without greed, humans would regress and many of the things we have today would disappear. It's hard to imagine what life would be like without human greed, but the world.