The Invisible Hand that is Creating Your City

Making decisions regarding the future of any aspect of a City is generally fraught with emotion. The proposed change of a street from two-way to one-way, the recommended activation of a park or a proposed tax increase quickly evolve into a study of the impact of these actions and the motives behind the related positions and decisions. Politicians, community leaders, developers and residents are regularly accused of acting in their own best interests.

Adam Smith would be proud.  The Father of Economics believed that the "invisible hand" of self interest ultimately benefitted society as a whole. In 1776 he released An Inquiry into the Nature and Causes of the Wealth of Nations. Here he informed the reader that man "By pursuing his own interest frequently promotes that of the society more effectually than when he really intends to promote it."  While considered a radical idea at the time,  Adam Smith's premise came to serve as the basic platform for supply and demand theories. He became famous and went on to influence future societies in their evolution as free markets.

Though there are obvious differences between the business marketplace and the building of our cities, one could argue that the impact of self interest remains the same. People will fight hard for what they believe in, they will work to ensure its success and that success will spur further success. We need to acknowledge the value of people fighting for their self interests when building our cities. In order to reap the benefits of self interest, we need to embrace it. And we need to embrace it from all partners and stakeholders. By better understanding the drivers behind the various passions, we will better work together to achieve a common goal of thriving cities.

Of course, one cannot help but consider an extreme situation where someone acting in their self interest has led to a detrimental impact on society. There is a line between acting in ones self interest and acting out of pure greed. Ideally, that is where our legal framework protects societies and individuals.  Adam Smith was not a fan of greed. But, he did believe self interest was good for society.

As tough decisions are negotiated and made on the public stage, we would all benefit from taking the time to understand and acknowledge each respective self interest. By embracing self interests, instead of using them as a tool to diminish those with opposing views, we will strengthen our communities. Let's leverage the "invisible hand."

Now, about that "Tragedy of the Commons"....