Greed

Economists recognize that since an element of greed is inevitable in any human endeavour, an economy should be designed to allow for it. That is why a free enterprise economy works. It is also why a true free enterprise economy does not work.

We have often heard the expression "Greed is good", which seemed to arise out of the Ronnie Reagan era. It is credited to Ivan Boesky, a Wall Street wizard (later of course went to jail for insider trading), and made famous by Michael Douglas in the film "Wall Street". Although the movie was a message against greed, as is typical with many overly complex messages, the idea of greed being good was all that remained a few years later. The idea that greed was good, possibly even patriotic, fermented and spread in certain circles through the nineties and the Bush administration. At one point, the war in Iraq was even seen as driven by greed. I remember at the time when Canada was deciding whether to go in or not, the main consideration for some people seemed to be how much we could benefit financially, as the US would only hand out contracts to countries who helped. This was what I call the "Little Red Hen Syndrome". I picked up on that because Carole MacNeil, on the show "CBC Sunday" used this analogy, apparently to persuade Canadians we should get into the war.

Greed and "self interest" are two similar terms, but they don't mean exactly the same thing. If a person has self interest, they are also somewhat interested in the well being of the people that work for them, their customers, their peers, and even the homeless people on the street. That's because your own well being does, in a way, depend on the entire cultural environment, assuming you do not live in a fortified gated community, and fly around in a bullet proof helicopter.

Out of pure self-interest, a person might support a fair system of taxation, or a public health system, or a public school system. Most people do not want to live like an emperor in a starving and violent nation. Arguably, it is in our own self interest to live in a country where everyone has opportunity to prosper and laws are fair and are obeyed by as many people as possible.

Greed is an extreme form of self interest that excludes the common good from the equation. It also seems to exclude the risk of going to jail, as it is often accompanied by the feeling that "I won't get caught".

Once the principal of "Greed", rather than "Self Interest", takes hold with the rich, it won't be too long before everyone is acting the same way. Countries do not run well when greed has taken hold from the top right down to the bottom of society. Nobody does their job right, everything is about "What's in it for me." And when everybody does that a sense of hopelessness sets in.

It is far better to live where people can be trusted to do their jobs. The whole country prospers when everyone pulls together. I know that may sound like socialism, but regardless of what you want to call it, we need some of that spirit of sharing the load. And it won't happen if everyone thinks the fat cats at the top operate under the banner of pure greed.