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 Originally Posted by Numbr2intheWorld
Is there a difference between what we say and what we do?
Do you think if we acted on our interests to protect the environment, ensure safety of product, maximize welfare and human progression and combat justice then would, in turn, a company who did this maximize profit? More specifically, if people wanted safety and reliability in their car, do you think the company who made the safest and most reliable cars would maximize their profits? If not, please explain.
Ok one more time. The fact that a company _can_ operate using those values or those goals, does _not_ mean that all companies will. In fact, many will not, since they are counterproductive for their raison d'être, creating shareholder value. Protecting the environment, for example, can be a way to polish a company's public image, use for taxation benefits or to clean up the beach of their CEO's summer cottage, but to posit that all companies would automatically do this without regulation is incredibly naive. Even with regulation companies left and right are getting caught with using child labor, dumping waste wherever they want, fixing prices and all sorts of abusive practices against their employees, competition and customers. Regulation is needed to ensure that _all_ companies, not just those that happen to feel like it, make safe products and adhere to environmental and safety standards.
This is the whole disconnect here, the foundations of free market are that every component in it (individuals) are all rational and benevolent, which simply isn't true. Assuming they do just leaves the whole system open for the most ruthless players to work the system for an unfair advantage.
Dan Ariely asks, Are we in control of our own decisions? | Video on TED.com
Are irrational economic choices baked into the human psyche? - SmartPlanet
Irrational Economic Man by Michael Shermer, City Journal 11 January 2009
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