The Pros and Cons of Greed Essay - 1157 Words

When the word â€Å"greed† is used it is most often in a negative connotation describing some sort of socially unacceptable behavior. Individuals who are described as â€Å"greedy† are often considered thieves or usurpers. Yet, is greed really that bad? Is it not greed that, ultimately, motivates one to excel? In a commencement speech at the University of California-Berkeley’s School of Business Administration stock speculator Ivan Boesky declared, â€Å"Greed is all right, by the way†¦. I think greed is healthy† (James), could a man who seemed so successful be so very wrong? The short answer to this question is yes, greed really is that bad and although it can be the greatest of motivators towards success, ultimately when it takes the form identified†¦show more content†¦For example, if a consumer who loves apples has a choice between a basket containing three apples or a basket containing four apples for the same price she would obvious ly choose the basket containing four apples. The consumer in our example cannot be considered greedy for trying to satisfy her insatiable desire for apples by choosing the basket with the extra apple, she is simply maximizing the return to her investment (the price paid for the basket). This principle is of course applicable to business as well. If a producer has a choice between a piece of equipment that reduces marginal cost by $100 and a piece of equipment that reduces marginal cost by $150, that producer will of course choose the second piece of equipment. This â€Å"good† behavior turns into â€Å"bad† behavior and deserves to be identified as greed when it is pursued at the expense of others, leading to a reduction in social benefit. In his paper Good Faith and Profit Maximization, James Gordley discusses the theories of Adam Smith, specifically that of the â€Å"Invisible Hand†. Smith’s idea was that individuals appeal to the self-interest of others in order to satisfy their own self-interest, he says, â€Å"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 self-interest. We address ourselves, not to their humanity but to their self-love† (Smith). According toShow MoreRelatedDbq Causes of Wwii1581 Words   |  7 PagesDBQ: Causes of WWII During the period previous to World War II causes that led to World War II included German attempt of imperialism in Europe, pro-appeasement ideologies towards German military expansion, and ignoring con-appeasement ideologies towards German military expansion. Documents1, 3, and 4 support the idea that one of the causes that led to World War II included Germany’s attempt of imperialism. 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