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He knew this would work be more effective and efficient than any governing body or groups of planners to decide the Three Economic Problems: What to produce? How to produce it? For whom to produce? He knew because the people, the consumers would be making those decisions for themselves. Smith also noticed that self-interest lead to increased trade and bargaining. “It is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of” (Classic Readings in Economics, pg 7). “It is this same trucking disposition which originally gives occasion to the division of labour” (Classic Readings in Economics, pg 7)...
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