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Economics 13th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson
Edition 13ISBN: 9780538754279Economics 13th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson
Edition 13ISBN: 9780538754279 Exercise 1
Self-interest is a powerful motivator. Does this necessarily imply that people are selfish and greedy? Do self-interest and selfishness mean the same thing?
Explanation
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The term self-interest, in economics, means taking decisions or acting in way that is beneficial primarily to one self. Such a decision or action may or may not be beneficial for all.
Truly, self-interest is the biggest motivator. For example, preparing jam from fresh fruits and selling it in the market for earning money is in the interest of an individual who has thought to start such a business. It would benefit not only him but his immediate family members. Thus, in this example we notice that self-interest does not necessarily mean selfishness.
In another view, when all the producers start the manufacturing of a commodity with a view to earn money, they are providing these goods for the consumption purpose and benefitting the consumers at large. These consumers in return are paying for the goods consumed by them. Thus, we notice that both producers and consumers are benefitting each other while acting in their respective self-interests.
Therefore, it holds true that self-interest does not imply being selfish and greedy at all times. The self-interests turn into selfishness only when they are backed by cut throat competition amongst the producers of the same commodity in the industry. Such an intention leads to corruption and price gouging and cheating.
Truly, self-interest is the biggest motivator. For example, preparing jam from fresh fruits and selling it in the market for earning money is in the interest of an individual who has thought to start such a business. It would benefit not only him but his immediate family members. Thus, in this example we notice that self-interest does not necessarily mean selfishness.
In another view, when all the producers start the manufacturing of a commodity with a view to earn money, they are providing these goods for the consumption purpose and benefitting the consumers at large. These consumers in return are paying for the goods consumed by them. Thus, we notice that both producers and consumers are benefitting each other while acting in their respective self-interests.
Therefore, it holds true that self-interest does not imply being selfish and greedy at all times. The self-interests turn into selfishness only when they are backed by cut throat competition amongst the producers of the same commodity in the industry. Such an intention leads to corruption and price gouging and cheating.
Economics 13th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson
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