the nature of markets
Regarding the nature of markets and capitalism, there's a form of natural selection at work, plus the concept of externalities. Externalities are costs that are borne by society rather than by the individual business, or benefits that are shared by society rather than accruing to the individual business. And this raises the dilemma of capitalism, and why markets cannot be trusted to work for the public good except in very limited circumstances:
1) A business will never consider a cost that is borne by society as a whole rather than by the business in specific; and
2) A business will never spend money to produce a benefit that is shared by everyone, but the cost borne only by the business itself.
Market forces work to society's benefit only when there are no externalized costs or benefits involved. The public good will be served by the profit motive if and only if the two are congruent. and that is not always (or even usually) true.
Natural selection takes this form. A business that behaves in an ethical fashion beyond what the law requires will be at a disadvantage in competition with others that have less scruples. Or, to put it more bluntly, business sinks to the level of thuggery that the law allows. That's not because business people are inherently Immoral, but because immoral business people put moral ones out of business, except where the law creates a level playing field and room for morality to operate.
If the law allowed it. business people would routinely hire assassins to kill their competitors. Those unwilling to take this action for moral reasons would be killed by those who were willing to. We see this in the illegal drug trade, where an unenforceable attempt to eradicate a commodity altogether drives the business outside legal protection altogether. The only reason we don't see it in legitimate business practice, is that the law forbids it.
In short, the idea that business immorality derives only from the state's attempt to regulate the economy has no basis either in observed fact, or in reason. If we want business to behave ethically, we must make that a legal requirement. -- Brian Rush
1) A business will never consider a cost that is borne by society as a whole rather than by the business in specific; and
2) A business will never spend money to produce a benefit that is shared by everyone, but the cost borne only by the business itself.
Market forces work to society's benefit only when there are no externalized costs or benefits involved. The public good will be served by the profit motive if and only if the two are congruent. and that is not always (or even usually) true.
Natural selection takes this form. A business that behaves in an ethical fashion beyond what the law requires will be at a disadvantage in competition with others that have less scruples. Or, to put it more bluntly, business sinks to the level of thuggery that the law allows. That's not because business people are inherently Immoral, but because immoral business people put moral ones out of business, except where the law creates a level playing field and room for morality to operate.
If the law allowed it. business people would routinely hire assassins to kill their competitors. Those unwilling to take this action for moral reasons would be killed by those who were willing to. We see this in the illegal drug trade, where an unenforceable attempt to eradicate a commodity altogether drives the business outside legal protection altogether. The only reason we don't see it in legitimate business practice, is that the law forbids it.
In short, the idea that business immorality derives only from the state's attempt to regulate the economy has no basis either in observed fact, or in reason. If we want business to behave ethically, we must make that a legal requirement. -- Brian Rush
Sem comentários:
Enviar um comentário