What role does self-interest play in capital lending? How is it good for the economy as a whole? According to Adam Smith, capital grows a nation’s wealth. He identifies two main reasons. First, the self-interest of the capital lender encourages them to invest in productive labor. Second, the self-interest of the lender guides them to invest in less-developed portions of the economy and help them develop. Keep reading to learn how lending capital for profit plays an essential role in growing the wealth of nations.
Adam Smith: Capital Grows a Nation’s Wealth in These 2 Ways










