"That this monopoly of the home-market frequently gives great encouragement to that particular species of industry which enjoys it, and frequently turns towards that employment a greater share of both the labour and stock of the society than would otherwise have gone to it, cannot be doubted. But whether it tends either to increase the general industry of the society, or to give it the most advantageous direction, is not, perhaps, altogether so evident."
- Book IV, Chapter 2, pg 482
I don't quite understand the analogy Smith draws between this protectionism and the individual. He later argues that by seeking his own benefit, an individual unbewittingly seeks the benefit of his society. Because the person does not actively seek his society's benefit, Smith says that this case is analagous to that of the society that tries to protect itself. But I don't understand how the two fit together. If society is like an individual, shouldn't it seek its own gain, and precisely by doing so, aid the "general industry"? I'm not sure if I'm mixing up terms or what, but this analogy just isn't making sense to me.
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