Comment by ivjw
21 days ago
I agree with the author that questions of ethics are social optimization problems.
> We must balance optimizing for oneself with optimizing for others
Yet if each person would optimize for themself, then the balancing is automatically taken care of. The invisible hand is even more free and dexterous on the social scale than the economic.
> the belief in the magical power of the free market always to serve the public good has no theoretical basis. In fact, our current climate crisis is a demonstrated market failure.
The power of the free market is at least as theoretically and empirically sound as the climate crisis.
I think this is naive, because a flaw of such free market thinking is its failure to price in externalities. That’s what the relationship with the climate crisis link was about.
How is the environment, which is directly of concern to the primary economic sector, and to the entire economic enterprise in the long run, an externality?
It’s actually the classic textbook example.
https://www.investopedia.com/terms/e/externality.asp
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The problem with optimising exclusively for oneself is that you definitionally optimise at the expense of others. Gaps are easily widened, and your balancing idea falls apart when the scales are tipped from the start.
It is not as simple as "my profit" vs. "others' expense". The elegance of the invisible hand theory is that it also accounts for the cases where others' expense is my expense and others' benefit is my benefit just as well as the others.
The scales sure can be tipped on the individual level, but you are only considering the "one individual vs. one individual" case. Many cliques of extreme power have been taken down by the weaker majority, which is also one of the processes contributing to the collapse of monopolies.
No, it isn't, which is why I added "definitionally". Let's say we have a limited resource, X, that is beneficial to hold, and it is more beneficial to hold more of it. As it is limited, acquiring necessarily means depriving another of it. Assuming one has the means to acquire more without impacting oneself negatively, in which situation (taking optimising for oneself as a maxim) you not seek to acquire more?
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