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0 sats \ 9 replies \ @premitive1 12 Jul 2023 \ on: Unleashing the Power of Greed: How the Free Market Propels Progress bitcoin
I don't understand why austrian economics types appropriated the greed term. Self-interest propels progress, greed propels FIAT.
Webster's defines greed as " a selfish and excessive desire for more of something (such as money) than is needed".
I believe the reason for using the greed term is that it rightly focuses attention on recognizing the basest of human instincts. If a system doesn't account for the malicious human nature it is a fools errand. If a system will work even when there are bad actors it will have no issues with good actors.
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A system with bad actors running it has no problem leeching off the productivity of the good actors. The story of human history. Greed leads to coercion and violence.
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Let's contrast with a centrally controlled market or even just a "regulated" market. These systems fail largely due to the centralization of power/control with the few that make/enforce the rules. This creates a magnet for the immoral and greedy towards power. The modern democratic/regulated economy doesn't account for the problem of greed. You can't eliminate greed unless you eliminate evil in the hearts of men.
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Contrast what with a centrally controlled market? I live in the United States of America, a country with one of the largest bureaucracies in the world. Every aspect of the economy in my country has the hands of government and private sector rent-seekers ALL over it. We definitely haven't eliminated evil or greed from the hearts of men.
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I agree with your description btw.
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Contrast a economy like the US with a free market. Or lets compare the US with an even more centrally controlled economy, the USSR. Greed exists but when you have centralized power the greediest are drawn to the power positions vs. a more free market where they are forced to deal with more individuals. This is why in the US there has been a war on small businesses. It is much easier for the state to deal with a few corporations vs. thousands or perhaps millions of smaller businesses.
Put another way, in a centrally planned economy the incentives are aligned to influence the planners/regulators. In a free market the incentives are more aligned with the consumer/customer.
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somehow despite having so much regulation, the USA has one of the freest markets I've seen, however we also have a lot of waste.
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Based on what I've read some states with larger welfare programs like Sweden have less regulation on business/markets. Its complicated. I don't pretend to understand it all but the basic concepts make sense to me. The US profits so much from the dollar dominance. That has to be a factor.
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I think USA benefits from dollar milkshake theory. Europeans benefit from USA spending 50% of its budget on foreign military defense.
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