The chapter explores Smith’s ideas on the human propensity for tradeTrades and self-interestSelf-interest as central elements of economic activity. Smith argues that economic behaviour is primarily motivated by self-interestSelf-interest rather than selflessnessSelflessness or benevolenceBenevolence. The famous phrase of “the butcherButcher, brewer, baker, the brewer, or the baker” highlights this point of view. A close reading of the phrase shows how readers are guided by the text to question the motives that lead to specializationSpecialization and thus the division of labourDivision of labour as one of the pillars of a functioning and prosperous society. Every person’s natural disposition to increase production through specializationSpecialization lies in the human propensity to exchangeExchanges goods and services. Smith posits that self-interestSelf-interest, when tempered by social norms and regulations, contributes to the overall welfare of society through the mechanism of the division of labourDivision of labour and specialisation. He contends that self-interestSelf-interest is not inherently selfish but rather a natural expression of human natureNature that, when properly regulated, fosters economic growth and ultimately the wealth of a nation. Smith employs the term “natureNature” to encompass various aspects of life such as natural libertyLiberty, natural lawNatural law, and the inherent tendencies of human behaviour. He highlights the importance of natural freedom in fostering general prosperity, particularly focusing on the right of individuals to freely choose their place of residence and occupation without undue interference from authorities. In this Smith identifies one of the problems of government, when regulatory interference inhibits the free movement of individuals and thus hinders the free development of markets. At the basis of every discussion in the context of human natureNature lies Smith’s assumption that natural freedom forms the basis of human society. He criticises laws and institutions that restrict natural freedom, arguing that they impede economic growth and hinder the free circulation of labourLabour and capitalCapital. He advocates for minimal government intervention in economic affairs, emphasizing the beneficial outcomes of allowing individuals to pursue their self-interestSelf-interest within a framework of natural freedom.