Self Interest: Avarice vs. Profusion
The self-interest of politicians and other government workers will inadvertently produce unintended positive consequences in their political activities. Self-interest requires personal incentivization; an attempt to control the outcome from “consequences of actions or decisions,” (Miller, R., et al., p. 227). Self-interest originating from personal incentives “may be positive or negative, monetary or nonmonetary;” thus must be weighed in the context of public good, (Miller R., et al., p. 227). The Heritage Foundation's Mandate for Leadership: The Conservative Promise pursues its self-interest in a manner that represents the betterment of society, thereby improving the lives of all Americans; focusing the application of moral values within a pluralistic society, (Heritage).
Self-interest can take on many forms, as “[e]very choice, and thus every policy, entails a cost,” (Miller, R., et al., p. 6). One example of self-interest noted by Roger Miller, et al., is that “opponents to trade dislike the competition;” citing self-interest as “the real source of most opposition to globalization,” (Miller, R., et al. p. 212). Jay W. Richards cites that “[o]ver two hundred years ago, the founder of modern economics, Adam Smith, said, ‘It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest,’” (Richards, J., p. 2). As indicated by Jay W. Richards, “you can pursue legitimate self-interest and the common good at the same time,” (Richards, J., p. 210).
Profusion. Man’s obligation to righteously self-regulate his behavior should not deter the pursuit of his own self-interest. Adam Smith contended that this battle is between “avarice and profusion;” in that “of which the one consists in an excess, the other in a defect, of the proper attention to the objects of self-interest,” (Haggarty, J.; Smith, A., Loc. 582). Man must prevent himself from succumbing to avarice; resisting his natural fallen propensities; whilst stewarding the profusion of profit in a Biblical manner. Thus, “proper self-interest is the basis for the Golden Rule, which Jesus called the second-greatest commandment, after the command to love God: ‘In everything do to others as you would have them do to you; for this is the law and the prophets’ (Matt. 7:12),” (Richards, J., p. 121).
Greed. Conversely, self-interest does not by default equate to greed; as Christians are decreed to “[l]et no one seek his own good, but the good of his neighbor,” (1 Corinthians 10:24; ESV). Man’s self-interest must co-labor with God to produce abundance. Thus any self-interest that produces omnipotent benevolence is conducive with a Biblical worldview. The Old Testament reminds us that “[w]hoever closes his ear to the cry of the poor will himself call out and not be answered,” (Proverbs 21:13; ESV). Similarly, Luke the Physician wrote in the New Testament that “[a]nd he said to them, ‘Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions,’” (Luke 12:15; ESV). Thus, any pursuit of self-interest must account for market pressures. Economist Murray Rothbard (1926–1995) noted that while “the laissez-faire or free-market doctrine does not assume that everyone always knows his own interest best; it asserts rather that everyone should have the right to be free to pursue his own interest as he deems best;” thus, “each man, in pursuing his own self-interest, furthers the interest of everyone else,” (Rothbard, M., et al. p. 751). Adam Smith, on self-interest, referred to the individual as a “person of exact economy and assiduity,” (Haggarty, J.; Smith, A., Loc. 582). But a politician of exact economy and assiduity acting in self-interest will not “anxious about small matters for their own sake;” because they act “in consequence of the scheme of life which he has laid down to himself,” (Haggarty, J.; Smith, A., Loc. 582).
Autonomy. Self-interest mitigates apathy, furthering responsibility and obligation; thereby precluding invitations for government intervention. Zealous politicians are less prone to succumbing to despotism; producing a more benevolent society, naturally regulated by market pressure. Moreover, self-interested government workers improve civic morale when their actions correlate with the constituents they have been elected to represent. Free market pressures and consumer demand will naturally deter single commodity surpluses; as economist Henry Hazlitt stated, “in an economy in equilibrium, a given industry can expand only at the expense of other industries,” (Hazlitt, H., p. 108).
Conclusion
In sum, self-interest is instrumental to the longevity of any policy endeavor in that it preserves public choice and offers a pathway to unanimity. Trade involves a benefit to both parties; thus “[a] free exchange is a win-win game,” [Richards, J., p. 62). Self-interest removes the need for government regulation by conserving man’s inherent autonomy. A combination of market pressure and the personal desire to achieve success in the self-interested pursuit produces inadvertent economic advantages, including increased wealth in the surrounding communities. Lastly, self-interest allows for specialization to engage in market competition, benefitting the consumer by offering the best value product.
Bibliography
ESV. Luke 12:15
ESV. Proverbs 21:13
Haggarty, J. (1976). The Wisdom of Adam Smith. Liberty Fund.
Hazlitt, H. (1946, 1962, 1979). Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics. Crown.
Miller, R., et al., (2017). The Economics of Public Issues, 20th Edition. [VitalSource Bookshelf 10.3.1]. Retrieved from vbk://9780134532035
Richards, J. (2009). Money, Greed, and God. [VitalSource Bookshelf 10.3.1]. Retrieved from vbk://9780061874567
Rothbard, M., et. al. (2018). Rothbard A to Z. Ludwig von Mises Institute.