Sunday, September 27, 2015

Self-interest is not bad.




People often complain about greedy capitalists and that CEO's only care about their own wealth. But, it's hard not to care about oneself first. It's natural to seek your own self interest.  If, your boss offered you a  raise wouldn't you try to earn it. Even, if you didn't  need the money it wouldn't be wrong to want a raise.  Let's say yous boss decided to cut your salary by 10%. Instantly, you would be furious and so would anyone else. . Even , if they didn't need that extra money. Most people are motivated by a self interest  as it's what gives them value as an employee. Money defines value whether you like it or not. That is how the world works. It's has a agreed upon defined value. Humans like having valuable things. They love to compete and be recognized for their work. 

That's why CEOs want higher salaries as money as it is how their   their value to the company is measured and rewarded. CEO is a  position that few people are qualified for. There is heavy competition and experience that is needed to be a CEO. This constant competition causes CEOs to be paid more than their employees. So there really is no valid comparison between CEOs and  a worker salary. Workers unfortunately are  replaceable. Workers require less skills and as such there is more of a supply for workers. This idea that capitalists are evil for seeking their self interest is ridiculous. Everyone should be allowed to have self-interest and be able rise up in economic status.  CEOs are motivated by greed to invest more  money back into their company. The worker is also  motivated by greed to work harder to get a better position. Everyone follows their self interest yet only the merchant is rebuked when he works for his self-interest. Yes, one could argue that more people should be allowed to move up. But, we must remember that a capitalist hierarchy itself is not bad.


Profit is not evil and should not be considered a dirty word. Self-interest is what drives people to work. Profit motivates people to create  a wonderful and wide variety of products. Many products were previously only restricted to the rich. Cars are a perfect example of this. Henry Ford wanted to make a profit and compete with the market. So, in the sense Henry Ford was fulfilling his own self interest. But, this desire for wealth motivated him to create cars that benefited society as whole. This really shows that wealth is not a zero-sum game. Society as a whole can become wealthier. There is no need for any "class struggle".

No comments:

Post a Comment