Self-Interest
You may or may not be familiar with the on-line comic strip
XKCD. If you’re not, here’s an example that appeared in mid-December.
While the situation is based on a familiar piece of fiction,
it presents a good example of how ethics and economics meet. In the situation
depicted, the solution to the challenge presented by the Wizard is easy enough,
especially if one presumes self-interest as the only motive. However, one must
ask “how many of us would solve the problem that way?” (We can also use this to
discuss the ideas of barter and double coincidence of wants, but we don’t have
to explore that right now.)
Though the depiction above is rather simplified, it is grounds for some meaningful discussion regarding Objectivism. Ayn Rand's famous "The Virtue of Selfishness" introduces a principle stating that all moral human action should be in self-interest. Contrarily, Immanuel Kant proposes altruism and dutiful service to others to be the criterion of moral action. I have always been interested in this battle between the two opposing thoughts, and the topic is popular now that these Objectivist principles are becoming integrated into current economic ideologies, such as Capitalism. I would like to note, rather candidly, that in being a proponent of altruism, I find this comic strip to be a perfect example of the ridiculous irrelevance of selfishness. Again, this comic strip is dramatized, but it's fun to poke at the thought that selfish action seems to ruin one of the most culturally-impacting fantasy novels of all time.
ReplyDeleteI suspect Adam Smith would agree with you. In The Theory of Moral Sentiments, he notes that we seek the approval of others in many of our actions. And that is also in our self-interest. So by acting in an altruistic way, we may seek to improve our status among others and gain their approval. Smith writes about the importance of being praiseworthy as well as worthy of praise.
ReplyDeleteThinking in terms of ethical theory, the actions suggested in this comic strip do not portray the actors in an ethical manner if you apply utilitarianism. Though there may be a double coincidence of wants, what about the greater good and the effects that may result with the obtainment of the shoes by the witch? Sure, Dorothy would be able to go home and the witch's wants would be satisfied, but what about the fallout that would occur if this exact transaction were to take place? Certainly there should be some ethical responsibility in the economic decisions that the characters' choose.
ReplyDeleteThe idea of self interest is the foundation behind where Economics and ethics meet. In economics so many people are only worried about the advancement and well being of themselves. In this particular comic strip the actions that take place represent unethical behavior. The question that comes into play is the potential consequences or ramifications that may occur after such actions. Certainly someone should be held responsible for what could happen. I also found it interesting the point brought up about Adam Smith in his theory of moral sentiments that people who seek the approval of others or "higher ups" is also in our own self interest. When going over this idea I think about the employee in a big business who really only cares about impressing his boss and gaining his approval so he can move up in the workplace. Certainly this would be an example of self interest.
ReplyDeleteAs we have progressed throughout the course, I have come to consider the idea that, on some level, there is nothing but self-interest; everything we do is motivated by our own self desires. There are clear and blatant examples of where individuals pursue their own interests above others, even when it is to the detriment of those around them. Even in seemingly selfless acts, I think an element of self-interest can always be found. When individuals or organizations make charitable donations from their own profits, aren’t they giving to organizations that they support and that will aid the society in which they wish to live in? When people help others, it can be viewed that they are, again, doing so because they want to contribute to the society in which they wish to live. Adam Smith pointed out that in order to gain the help of an individual, you will likely have to first point out how their helping you is to their own benefit (Evensky 110). Similarly, I think individuals often help one another because they hope that one day the favor will be returned. There is also often a religious motivating factor which influences individuals to perform good deeds in the hopes of rewards and a greater after-life. When we help others, is it not because it makes us feel good to do so and would make us feel bad and/or regretful if we did not? I think that in nearly every act, even those that may not, on the surface, appear to be of any benefit to our own benefit, are actually motivated by our own self-interest on one level or another.
ReplyDeleteI agree with Lauren. I believe that people are naturally self-interested. In every day decisions that are made, people based this off their opportunity costs and what would the most beneficial to them. Relating this to business transactions, I believe there is a ethical standard that must be considered. Businesses ultimately want to thrive and produce enough profits from their transactions; they ultimately want to beat out their competition. Although there is a high level of competitiveness, business transactions must be ethical in the sense that both competitors must benefit from it. If only one side of the transaction benefited and the other did not, then this would lead to a handicapped economy and would not thrive by any means.
ReplyDelete