Positive effect of self-interest examined

Running head: PURSUIT OF SELF-INTEREST AND ITS IMPACT ON THE SOCIETY
Pursuit of self-interest and its impact on the society
Name of the student
Name of the University
Author Note

PURSUIT OF SELF-INTEREST AND ITS IMPACT ON THE SOCIETY
1
Introduction
The debate surrounding the issue of pursuit of self-interest and its impact on the society
can be seen to be in existence since the beginning of the Industrial Revolution. During the time
of feudalism, some amount of benefit to the society was maintained. The workers who worked in
the plantations of the feudal lords, had some right over the share of the crops which were
harvested by them. However, with the inception of Industrial Revolution, this came to a halt
whereby the pursuit of capitalism and self-interest was given more priority. The purpose of this
paper is to understand if the pursuit of individual self-interest benefit society. In this context, two
rival viewpoints have been accounted for to reach a holistic conclusion.
Debate on the issue of pursuit of self-interest and its benefit to the society
There is a view that the capitalist world is harmful for the society as a whole. This is
based on a liberal ideology which advocates the rights of the people and their freedom to pursue
any activity of their choice. The capitalist world order was of the opinion that the aspect of
competition is necessary for leading to the consequent growth of the nation state. This meant that
accumulation of private property was encouraged and now individuals started to look for their
own profit motives. Thus, this led to the harm of the greater interest of the society and the idea of
communal belonging in the sense that those individuals who did not have the means of
production from beforehand, were adversely affected since they could not make use of the
natural resources. Thus, they needed to be dependent on the individuals of the society who
already had the means of production and could exploit the natural resources for their benefits.
Thus, they were the ones who could expand the market economy on the toils of the common
masses who had to be dependent on them for their basic mans of subsistence.

PURSUIT OF SELF-INTEREST AND ITS IMPACT ON THE SOCIETY
2
Liberal opinion as advocated by Shand (1990)
This viewpoint is present within the article written by Shand (1990), titled “'Markets and
morality'. Free market morality: the political economy of the Austrian school”. The author is of
the opinion that the doctrine of invisible hand of the market which would work for the welfare of
the greater good, is a utilitarian concept. He makes reference to the words of Adam Smith in this
regard. No individual of the society would help out someone else based on their benevolence.
Individuals help out on the basis that they would get something in return. Thus, this capitalist
ideology of the human beings guide their relationship with each other in the economic markets of
the society, even in the contemporary times. Thus is how the private interests of the individual
are found to be harmonized with the communal interests.
Thus, some of the arguments which have been made by Shand in the article can be stated
as follows –
1. Self-interest for the welfare of the society is a utilitarian concept.
2. The individuals work for the aid of others by expecting something in return.
3. The assumption that self-interest is the strongest purpose of human activity is true.
4. It is only through the understanding of self-interest that one can understand human nature.
5. Business relations are made on the assumption that everyone has a particular objective to
achieve which is peculiar only to them.
Thus, the understanding of all these points as raised on the article of Shand shows that he
believed in the aspect of self-interest but only from an individualistic aspect. Thus, he supported
the viewpoint that the economic market should be free and more individual oriented.