When businesses or
individuals grow their wealth, it is referred to as greed by the critics of
capitalism. But have they stop to think what the world would be like without
this so-called greed. The industrial revolution was because of capitalism, the
sophisticated techniques and state of the art equipment we use to diagnose and
treat diseases is because of capitalism, the ability to learn in a virtual
classroom is because of capitalism, and Ford’s drive and passion to mass
produce cars which lead to the invention of the assembly line was a result of
capitalism. Now stop and think about a world without all these and many other
capitalist endeavors. For example, in 1895 Rontgen discovered x-rays and within
one year the first radiology department was opened in Glasgow (Waters, 2011). Since
then through capitalism x-ray, CT scan and radiation therapy equipment are
available worldwide. Where would the manufacturing industry be, in terms of
supplying society’s need, without the assembly. The biggest advantage of
capitalism is that it creates wealth by letting people follow their
self-interests (Froeb, McCann, Shor & Ward, 2016).
individuals grow their wealth, it is referred to as greed by the critics of
capitalism. But have they stop to think what the world would be like without
this so-called greed. The industrial revolution was because of capitalism, the
sophisticated techniques and state of the art equipment we use to diagnose and
treat diseases is because of capitalism, the ability to learn in a virtual
classroom is because of capitalism, and Ford’s drive and passion to mass
produce cars which lead to the invention of the assembly line was a result of
capitalism. Now stop and think about a world without all these and many other
capitalist endeavors. For example, in 1895 Rontgen discovered x-rays and within
one year the first radiology department was opened in Glasgow (Waters, 2011). Since
then through capitalism x-ray, CT scan and radiation therapy equipment are
available worldwide. Where would the manufacturing industry be, in terms of
supplying society’s need, without the assembly. The biggest advantage of
capitalism is that it creates wealth by letting people follow their
self-interests (Froeb, McCann, Shor & Ward, 2016).
When a business that is
already profitable decides to increase its profit margin by expanding it is
satisfying a self-interest and in so doing it also provides wealth for others
by creating jobs, increasing the value of its stock (increasing stockholders’
wealth), and increasing investors returns. There is a subtle difference between
self-interest and selfishness with respect to capitalism. According to Adam
Smith, the father of capitalism, “It is not from the benevolence of the
butcher, the brewer, or the baker, that we expect our dinner, but from their
regard to their own interest” (Richards, 2009).
In a free market, we all have the option to increase our wealth legally.
Many of us accumulate assets that are not working for us like the excessive number
of shoes in our closets that we don’t use. How much interest do you gain on
those shoes? However, if you should sell them to someone who values them more
(mutually beneficial transaction) and invest the proceeds you create wealth.
Wealth is created when assets move from a lower- to higher-valued uses (Froeb
et al, 2016).
already profitable decides to increase its profit margin by expanding it is
satisfying a self-interest and in so doing it also provides wealth for others
by creating jobs, increasing the value of its stock (increasing stockholders’
wealth), and increasing investors returns. There is a subtle difference between
self-interest and selfishness with respect to capitalism. According to Adam
Smith, the father of capitalism, “It is not from the benevolence of the
butcher, the brewer, or the baker, that we expect our dinner, but from their
regard to their own interest” (Richards, 2009).
In a free market, we all have the option to increase our wealth legally.
Many of us accumulate assets that are not working for us like the excessive number
of shoes in our closets that we don’t use. How much interest do you gain on
those shoes? However, if you should sell them to someone who values them more
(mutually beneficial transaction) and invest the proceeds you create wealth.
Wealth is created when assets move from a lower- to higher-valued uses (Froeb
et al, 2016).
In Stossel’s Video Mother
Theresa was compared to an entrepreneur and surprisingly the entrepreneur was
cited as having done more good than Mother Theresa. That is not to say I am not
a supporter of altruism, quite the contrary. Altruism is germane to the
corporate social responsibility (CSR) of businesses. But isn’t it better to
teach a man to grow his own food so he will never be hungry again than to feed
him temporarily? So, critics the hypocritical consumers of capitalism, you have
a choice Capitalism or Altruism? “Capitalism and altruism are incompatible, they
are philosophical opposites and therefore cannot exist in the same man or the
same society” (Richards, 2009). Moreover, altruism resembles socialism a system
that our society abhors?
Theresa was compared to an entrepreneur and surprisingly the entrepreneur was
cited as having done more good than Mother Theresa. That is not to say I am not
a supporter of altruism, quite the contrary. Altruism is germane to the
corporate social responsibility (CSR) of businesses. But isn’t it better to
teach a man to grow his own food so he will never be hungry again than to feed
him temporarily? So, critics the hypocritical consumers of capitalism, you have
a choice Capitalism or Altruism? “Capitalism and altruism are incompatible, they
are philosophical opposites and therefore cannot exist in the same man or the
same society” (Richards, 2009). Moreover, altruism resembles socialism a system
that our society abhors?
References:
Froeb, L. M., McCann, B.
T., Shor, M. & Ward, M. R. (2016). Managerial Economics: A Problem-Solving
Approach. Fourth Edition. Cengage Learning, Boston. Print
T., Shor, M. & Ward, M. R. (2016). Managerial Economics: A Problem-Solving
Approach. Fourth Edition. Cengage Learning, Boston. Print
Froeb, L. (2016) Repost:
Stossel on Greed. Greed (ABC 20/20 1998). Managerial Econ January 9, 2017.
Retrieved from https://managerialecon.blogspot.com/ Accessed February 5, 2017
Stossel on Greed. Greed (ABC 20/20 1998). Managerial Econ January 9, 2017.
Retrieved from https://managerialecon.blogspot.com/ Accessed February 5, 2017
Richards, J. W. (2009).
Was Ayn Rand Right? Capitalism and Greed. Christian Research Journal, Vol 32,
No. 4, (2009). Retrieved from http://www.equip.org/PDF/JAF1324.pdf
Accessed February 5, 2017.
Was Ayn Rand Right? Capitalism and Greed. Christian Research Journal, Vol 32,
No. 4, (2009). Retrieved from http://www.equip.org/PDF/JAF1324.pdf
Accessed February 5, 2017.
Waters, H. (2011). The
First X-ray, 1895. The Scientist, July 1, 2011. Retrieved from http://www.the-scientist.com/?articles.view/articleNo/30693/title/The-First-X-ray--1895/ Accessed February 5, 2017.
First X-ray, 1895. The Scientist, July 1, 2011. Retrieved from http://www.the-scientist.com/?articles.view/articleNo/30693/title/The-First-X-ray--1895/ Accessed February 5, 2017.
