The Problem with Self-interest and an Argument Supporting Bureaucracy
Libertarians/Classical Liberalists like to focus on the concept of self-interest. Often times, self-interest is confused by selfishness. Most acts of self-interest, though, are not considered selfish. However, when one’s self-interest is based on selfishness, there can be adverse effects upon society. As well be seen through my analysis, bureaucracies are necessary to offset the said adverse effects.
I will provide an example to illustrate why self-interested acts that are based on selfish behavior lead to adverse effects on society. Let us say there is a person, Able, who invents a poisonous concoction that, when consumed by humans, is instantly fatal. Let us also say that Able is also able to develop an effective marketing strategy; a marketing strategy that advertises this poison not as a poison but as a miracle drug. Furthermore, this marketing is so effective that it leads to millions of people consuming this “miracle drug.” Although millions of people die as a result of this, Able receives millions of dollars from its sale. At the same time, Able emigrates to a country that does not hold an extradition treaty with the U.S., which allows Able to escape both the civic and criminal court systems.
This situation can have a disastrous impact upon society besides the millions of people who died. This has the effect of producing a sense of distrust, against pharmaceutical companies, among those who were not duped into using the “miracle drug,” which hinders them from consuming drugs beneficial to their health. This further has the effect of hindering innovation in the pharmaceutical industry. The same can be said about any industry, which can adversely impact innovation in those industries, which prevents improvements in efficiency, which hinders productivity, which ultimately prevents the expansion of wealth.
This is where bureaucratic agencies, such as the Food and Drug Administration (FDA) come into play. The FDA and other agencies are able to establish regulations that emplace preventative measures so that situations like the one above, and its consequences, do not occur.
Self-interested acts, when formed by selfish behavior, can lead to adverse effects on society. The way to prevent this, it seems, is through bureaucracy.
I will provide an example to illustrate why self-interested acts that are based on selfish behavior lead to adverse effects on society. Let us say there is a person, Able, who invents a poisonous concoction that, when consumed by humans, is instantly fatal. Let us also say that Able is also able to develop an effective marketing strategy; a marketing strategy that advertises this poison not as a poison but as a miracle drug. Furthermore, this marketing is so effective that it leads to millions of people consuming this “miracle drug.” Although millions of people die as a result of this, Able receives millions of dollars from its sale. At the same time, Able emigrates to a country that does not hold an extradition treaty with the U.S., which allows Able to escape both the civic and criminal court systems.
This situation can have a disastrous impact upon society besides the millions of people who died. This has the effect of producing a sense of distrust, against pharmaceutical companies, among those who were not duped into using the “miracle drug,” which hinders them from consuming drugs beneficial to their health. This further has the effect of hindering innovation in the pharmaceutical industry. The same can be said about any industry, which can adversely impact innovation in those industries, which prevents improvements in efficiency, which hinders productivity, which ultimately prevents the expansion of wealth.
This is where bureaucratic agencies, such as the Food and Drug Administration (FDA) come into play. The FDA and other agencies are able to establish regulations that emplace preventative measures so that situations like the one above, and its consequences, do not occur.
Self-interested acts, when formed by selfish behavior, can lead to adverse effects on society. The way to prevent this, it seems, is through bureaucracy.
posted by Rich at 9:02 PM
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