“The American founders believed, and capitalism rests on the belief, that people are driven by “self-interest” and the desire to better our condition. Self-interest is not necessarily bad; in fact, Smith believed, and capitalism presupposes, that the general welfare depends on allowing an individual to pursue his self-interest “as long as he does not violate the laws of justice.” When a person acts in his own interest, “he frequently promotes [the interest] of society more effectually than when he really intends to promote it. ”7
Here it is important to distinguish between self-interest and selfishness. Self-interest—unlike selfishness—will often lead one to commit acts of altruism; rightly understood, it knows that no man is an island, that we are part of a larger community, and that what is good for others is good for us. To put it another way: Pursuing our own good can advance the common good. Even more, advancing the common good can advance our own good.
