What significant idea did Adam Smith express regarding economic self-interest?

Adam Smith's significant idea regarding economic self-interest is that it plays a crucial role in driving market interactions. He argued that individuals pursuing their own self-interest inadvertently contribute to the overall economic wellbeing of society. This phenomenon is often referred to as the "invisible hand," where personal gain leads to economic benefits for the community as a whole.

In a market economy, when individuals seek to maximize their own profits, they create goods and services that others need or desire. This not only fosters innovation and efficiency but also helps in allocating resources effectively based on consumer demand. As a result, the pursuit of self-interest leads to the creation of wealth and enhances the standard of living.

Understanding this concept is fundamental to grasp how modern economies function, as it highlights the importance of individual motivations and market dynamics.