The inherent value of self-interest is frequently diluted and diminished into the fallacy of “selfishness,” but self-interest, rationally understood, benefits individuals, the community as well as the society in general.

Self-interest is a positive and socially beneficial concept when applied in a healthy and conscious manner.

What do I mean by “rational self-interest?” In this context, the sort of self-interest that is actually beneficial.

While things like drugs and other destructive substances may seem “in one’s interest” at the moment they’re used, they have no long-term benefit and are inherently and objectively harmful. Thus, rational self-interest is different from hedonism and pleasure, and not to be confused with egotism.

The best example of rational self-interest applied is a market setting; it is in this environment that self-interest makes sense.

After all, 18th-century Scottish philosopher Adam Smith penned in his magnum opus “The Wealth of Nations” that “It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own interest.

We address ourselves, not to their humanity, but to their self-love, and never talk to them of our own necessities, but of their advantages.”

Even 200 years ago, it was understood that what motivates the market and individual actors is their self-interest. This is the fundamental basis of the economy, as people are not motivated by altruism-it is a profit incentive, the notion of making money for its own sake which drives people.

There is nothing wrong with this motivation, as profit allows one to support oneself, one’s family and even contribute to the community and to charity.

Self-interest, rightly understood, is a strong force for good in our society, as what benefits one person often benefits the entire community, or even society, at-large.

It is critical to understand the ethics of self-interest. One must keep the community in mind while making these decisions, as strong individuals make a strong community to support those less fortunate. If one acts in a selfish way and burns bridges, destroying connections and crushing dreams to reach the “top of the ladder,” the climb to the top and progress that’s made there is utterly meaningless.

Without concern for others, self-interest has no power because it’s nearly impossible to achieve great things and large profits without help, collaboration and advice of those in the community.

Rational self-interest would not promote anarchy, but rather harmony in a capitalist system, because every man and woman would look out for themselves, ensuring fair transactions and shrewd consumers.

Of course there is still need for government, but under the same framework Adam Smith also mentioned in “Wealth of Nations” that government ought to provide only what the market does not.

This would include education, national defense and an internal national mechanism to protect people from others in society who might prey on them.Imagine the example of running a small business under our system. It is within your self-interest to pursue your passion.

Now make the best possible product one can make, because this is acting on one’s passion.

The community, thus, also benefits: When individuals use self-interest to pursue their passions and communicate this into action, the individuals in the community get the opportunity to experience the passion and love spent crafting the products.

Everyone benefits when we apply self-interest in a rational, safe and healthy manner.