Competition

Many people might think of competition as a fact of life… which, yeah, it is. But Adam Smith also sees it as a symbol of all that is good and admirable about human existence.

He also believes that nothing contributes more to human happiness than competition, because competition causes all of us to raise our game and be better. As Smith notes:

[…] competition […] is advantageous to the great body of the people, who profit greatly besides by the good market which the great expence of such a nation affords them in every other way. (4.3.8)

In other words, competition gives us access to better products and services for cheaper prices because the folks producing these things are always trying to outdo each other. Yay, cutthroat competition!

There is almost no part of life (in Smith's mind) that can't be improved by competition. In banking, for example, Smith thinks that "free competition too obliges all bankers to be more liberal in their dealings with their customers, lest their rivals should carry them away" (2.2.52).

So in other words, you have a much better opportunity to qualify for a bank loan if more bankers are competing with each other to keep you satisfied. At the end of the day, Smith thinks that:

In general, if any branch of trade, or any division of labour, be advantageous to the publick, the freer and more general the competition, it will always be the more so. (2.2.52)

So yeah, competition is good, especially if you love buying high quality products really cheaply.