Seeing as today is Armageddon-eve I thought I should write something in that strain.
In the same year that the United States declared its independence, one of the most influential books in modern history was published. Incidentally, the book came to define the lifestyles of people in the U.S. more than we might acknowledge. The book that I am referring to, is of course the Wealth of Nations by Adam Smith.
Now, you might be wondering, what in the world does a book about economic policy have to do with the end of the world? Now, this is where I start making ridiculous assertions, and in no way am I saying, nor do I believe, that what I say is correct, but rather, I hope to inspire thought, and if you have something to say, comment!
Most of you understand the main tentets of The Wealth of Nations, or as we know it today, the main principles of capitalism. Capitalistic beliefs essentially say that what is best of the individual is best for the group as a whole, and as an extension of that, that when one strives to achieve the best for themselves, he is contributing the most that he can to society. My problem with this ideology, is that in our capitalistic society, it is one of the main causes the ridiculous disparities between the rich and the poor, as well as a wealth of other problems(hah wealth! get it?
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Now don’t get me wrong, I am not saying that Adam Smith was wrong in saying that whats best for the individual is best for the whole. What I am saying however, is that our perception of this statement results in the problems plague our modern day society. An example of this result is the monopolies that came into existence in the early twentieth century, due to men such as Rockefeller and Carnegie. The government then realized that when one company has control of a whole market, it does no one good, in fact it gives them such great power that they can demand almost anything (monetarily) from the consumer, and as a result of trying to get the upper hand we actually ended up removing competition altogether. And as a testament to the fact that monopolies to no good, the government enacted the Sherman Anti-Trust act, which is still enforced today.
Another example of how our unsound perception of the ideals of capitalism causes more harm than good is the behavior and decisions of many high level executives in the corporate world. As we have all heard, one of the main problems of modern american society is a lack of jobs due to the outsourcing of labor to countries with more flexible wages and working regulations. People often argue that this practice of outsourcing is actually good for us, as it allows for things to be produced at lower costs, and people often use this as an excuse for outsourcing because it leads to lower prices. However, people don’t see that without jobs, they cannot afford even the cheapest products and when the producer has power, the products might not be cheaper when they(the producers) can just make larger profits, so in the long run it did not help the people. Furthermore, in the long run, the executives will not end up benefiting from their selfish decisions to earn more, because as a result of destroying so many jobs, they have also completely destroyed their consumer base. So in the end, when a company tries to help only itself, it actually ends up benefiting no one.
In 1950, John Nash worked out a modification of Adam Smith’s economic theory. This modification stated that what is simply best of the individual is not always the best choice, rather it said that what is actually the best decision on the whole, is what is best for the individual and the group, or society. This idea is easily shown with game theory, and if you are interested, I highly encourage you to study game theory and see that what is best for the individual actually yields a lower total utility than what is best for the individual and group.
So, back to my original statement, why our askew perception of capitalism will bring “ZE END OF ZE WOORLD”. Capitalism encourages competition, but as we now take it, also ends up ruining our competition and anything that “limits our ability” i.e. consumers. As a result of always seeking what is best for ourself individually, we end up screwing up everything else, and in the long run, what we once believed to be the best also ruins us. As the saying goes, what goes around comes around. I believe then, we should alter our perception of capitalism, and follow the “Nash” view, as I call it, and start helping others as we would like to be helped, and only do things for our benefit as long as they don’t harm other people. This does not mean giving up what you might have so that someone else can have it, but rather when you try to gain something, to not take it from others, but create it for yourself through honest hard work.
Anyway, I hope this has inspired you to look at things a little differently, if not, then oh well. Again, I encourage anyone that reads this to post their own opinions in the comments as I would like to see what other people think, and if there is some debate, then GREAT! I love debating, or as some would say “arguing”, and when we argue without ill will, it brings nothing but the sharpening of the mind.
Without further adieu, Cheers!