![]() Roman Christian poet Prudentius depicted greed in the Early Middle Ages as the most frightening of all vices. Philosophers from Socrates and Plato to David Hume and Immanuel Kant viewed greed as a moral violation, to be avoided and denounced. If we rewind to ancient times, the idea of greed as a sin is planted throughout history. Understanding this fact, along with a greater appreciation of greed's harm, can go a long way toward curtailing selfish behavior. The belief that greed allows markets to flourish is more likely a reflection of the ability of Homo sapiens to justify our selfish motivations than it is a prescription for economic success. When we consider the situations in which financial self-interest benefits individuals and society and when it impedes, there are few of the former and many of the latter. Even today the overwhelming majority of people shun greedy behavior. Yet greed has historically had a bad reputation. ![]() The late American economist Milton Friedman espoused this ideology of greed when he said, “The world runs on individuals pursuing their separate interests.” He asked, “Is there some society you know that doesn't run on greed?” Homo economicus, the rational self-interested being that represents standard economic theory, benefits society only to the extent that he maximizes his own utility. ![]() By focusing on personal gains, people directly contribute to the greater good. The poster boy for unharnessed greed echoes the sentiment of rational free-market economists, who view greed as not only an inevitable aspect of human nature but ultimately a desirable one.Īs the prevailing (yet simplistic) economic theory goes, greed motivates competition, and competition is essential for growth in a functioning market. Greed clarifies, cuts through and captures the essence of the evolutionary spirit.” These are the words of Gordon Gekko, played by Michael Douglas in the 1987 film Wall Street. ![]() The point is, ladies and gentleman, that greed, for lack of a better word, is good. ![]()
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