There's nothing wrong with greed, it's a basic human emotion. In a true capitalist system, greed is balanced by fear of failure, poverty, death, etc. The trouble with greed arises only when socialism takes the fore. The greedy soon learn that the brunt of their failure is borne by all, and the once effective regulation by natural selection becomes ineffective. Then the system is left trying to regulate every individual action that may hurt the group. The result is tyranny.
Greed is not the problem.
Edward Harrison
· 2 months ago
Greed is not ‘bad’ anymore than greed is ‘good.’ But left unchecked, greed leads to sub-optimal outcomes. This is a view at odds with the central tenet at the heart of the prevailing view in economic orthodoxy.
The question is whether we should let market forces (loosely defined by ‘greed and fear’) dictate substantially all economic outcomes in society. My answer is no.
The trouble with greed DOES arise when socialism takes the fore. It's called crony capitalism and it can only be stopped by adequate regulatory oversight.
fred
· 2 months ago
As I mentioned above, greed is not "unchecked" under a true capitalist system. It is checked by respect for the consequences of unbridled greed. The "sub-optimal outcomes" are suffered by the ones who allow their greed to overcome their good judgement.
Unfortunately, what we have is not a capitalist system, not any longer. Socialism has transferred responsibility from the individual to society, and the events of the past two years have furthered that process. What you are suggesting now, "further regulatory oversight" is simply the next step in the path toward tyranny. There will never be a good stopping point in your regulatory process, because humans will always strive for maximum personal advantage in every endeavor. Eventually the government must regulate every activity, for the good of society of course.
You may think that prudent people can stop "regulating" at a prudent point. But, once the risks are socialized, and we are well down that road in every aspect, then that's not possible. So, I say again, greed is not the problem, nor is regulation of greed the answer. Market discipline is the answer, the only check for greed that works short of totalitarianism.
Edward Harrison
· 2 months ago
That makes zero sense to me. It sounds like an advocacy of self-regulation which doesn't work. The only thing that keeps people from embezzlement, perjury, or murder is not market discipline, it is the threat of law. That is the function that regulators serve. They are there to enforce the rules of the game.
Are you telling me that banks wouldn't try to securitize liar loans if 'market discipline' held them in check. That is preposterous. The risk has been offloaded onto a third party. Again, this is why regulations exist.
LavrentiBeria
· 2 months ago
Greed, son, is one of the seven Cardinal or Deadly Sins. It is so destructive of the spirit that an act of God is required to correct its trajectory and annul its effect. You may want to begin giving consideration to the opinion of experts on the question, something rarely done in a culture that today does most of its educating on morality in college dorm room discussions. You're worth more than that kind of abasement, eh?
Edward Harrison
· 2 months ago
Greed IS one of the seven deadly sins. Yes, it is a natural human emotion. But not one that should be flaunted as something to be proud of. We have to be realistic about whether we can control greed and fear or whether we should allow them to play out on some measured scale.
But, it shows an enormous change in attitudes and beliefs for people to run around saying "Greed is Good." It's absolutely deplorable and will be the ruin of us.
All Comments
Greed is not the problem.
The question is whether we should let market forces (loosely defined by ‘greed and fear’) dictate substantially all economic outcomes in society.
My answer is no.
The trouble with greed DOES arise when socialism takes the fore. It's called crony capitalism and it can only be stopped by adequate regulatory oversight.
Unfortunately, what we have is not a capitalist system, not any longer. Socialism has transferred responsibility from the individual to society, and the events of the past two years have furthered that process. What you are suggesting now, "further regulatory oversight" is simply the next step in the path toward tyranny. There will never be a good stopping point in your regulatory process, because humans will always strive for maximum personal advantage in every endeavor. Eventually the government must regulate every activity, for the good of society of course.
You may think that prudent people can stop "regulating" at a prudent point. But, once the risks are socialized, and we are well down that road in every aspect, then that's not possible. So, I say again, greed is not the problem, nor is regulation of greed the answer. Market discipline is the answer, the only check for greed that works short of totalitarianism.
Are you telling me that banks wouldn't try to securitize liar loans if 'market discipline' held them in check. That is preposterous. The risk has been offloaded onto a third party. Again, this is why regulations exist.
But, it shows an enormous change in attitudes and beliefs for people to run around saying "Greed is Good." It's absolutely deplorable and will be the ruin of us.