Greed Misunderstood

Justification by the bureaucratic mindset is the use of the word “greed” to put down capitalistic business as if it were bad, dirty, and taking advantage of customers. I define “greed” as earnest self-interest, but the term is used by the liberal politicians and printed media to imply taking advantage of customers.

“Taking advantage of customers” implies coercion. By definition, coercion is to compel by force, intimidation, or by authority, especially without regard for individual desire or volition.

Corporations’ self-interest reflects their expectation of deriving profit from their products, and that is not coercion nor is it the negative meaning of “greed” as implied by the media’s common usage. It is in companies’ best interest to satisfy customers freely and honestly.

Consumers are interested in the satisfaction they derive from the products they purchase. This is the essence of “selfish”; that is, looking out for one’s self and one’s well-being. I taught my children what I observed to be true; namely, “No one has more interest in you than you.” The corollary is equally important, “You must take care of yourself and look after you own interests,” which, of course, must be done honestly and without fraud. Success in society as a whole occurs when its members (at least the majority) behave in honest self-interest.

What or who is of greatest benefit to society?

At the time of the United States’ War of Independence, Adam Smith in England described one of the most important effects of capitalism. He captured the vital element of societal success when he wrote, “He (the businessman) generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. … He intends only his own security. By directing that industry in such a manner as its produce may be the greatest value, he intends only his own gain.” A. Smith observed further, “By pursuing his own interest he frequently promotes that of society more effectually than when he really intends to promote it.”

The consumer benefits by purchasing the businessman’s products. Multiply the benefits to all the purchasers of all the available products, produce, and services made available by the businesses, and one observes the improved standard of living or the total benefit to the whole society.

Imagine that, the total of all the so-called “greeds” of all the businesses, small and large, actually benefits the entire society! Then, where does the concept originate that businesses hurt society? It is from “progressive” collectivists who claim that they can improve society by taxing the working productive people and business enterprises to redistribute it to welfare recipients.

Today, the government attempts to spend its way to prosperity. By putting down big business, politicians expect to justify their own activity. They believe in redistributing the wealth without healthy market exchange, which they are now selling as “change.” In spite of what they proclaim, the liberal socialists’ true intent is in the deriving of political power, and they do so by subterfuge and fraudulent promises. Thomas Sowell so aptly observed: “More frightening to me than any policy or politician is the ease with which the public is played for fools with words.” 

Human nature guides individuals always to seek gain and avoid loss. Political activity works against individual human nature in pursuing its own concept of gain.

Non-coercive greed is a moral and positive concept. Hopefully understanding this will help honest and productive citizens to stand up for what is in their aggregate and combined interest.

David L. Wood, M.D., Long Beach, CA, May 20, 2009; word count 595.