Tuesday, October 22, 2013

Adam Smith "own interest" theory in a family context

In 1776, Adam Smith famously wrote: "It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect our dinner, but from their regard to their own interest."

Own interest is not only greed. If they care for the quality, their clients will stick and thus they will make more money on long term.

The same concept applies at home, if the father cares for his retirement welfare, he should care for his wife and children and put efforts to treat them well. If the mother cares for her future happiness, she will treat her husband and children well not to loose their future care.

A good butcher is the one who smile and please his clients. An attractive bakery is the one whose owner is always nice with people and she strive to serve them well.

A happy family needs a smart father and a gentle pleasant mother.