What is the difference between self-interest and social interest?

Self-interest is when the focus of needs and desires is on one’s self. Social interest is when the decision made from self-interest has an effect on society.

Self interest example

John act in his self-interest, he does not care about anyone else. He needs food in order to survive. He can get the food himself by hunting or growing the food.

Social interest example

John Still act in self-interest. He still does not care about anyone else. He still needs food in order to survive. But this time, John trade or buy the food from Peter the owner of the food store.

Both John and Peter the owner of the food’s store are acting in self-interest. By acting in self-interest they also acting in social interest because both benefit from the trading.

The invisible hand

The invisible hand is a metaphor that describe the unintended consequence of people acting in the self-interest in society.

If Peter the owner of the food’s store was doing a bad job. Then john may decide to stop buying food there and instead buy the food from someone else.

So the invisible hand takes money from peter the owner of the food store and give it to someone else.

That’s it.

Take a calculated risk.

Now, start and adjust as you go.