Analyzing the Impact of Self Interest on Society: POL 2000 Essay

This essay, crafted for a POL 2000 course, explores the central question of whether the pursuit of self-interest benefits society, drawing heavily on the economic theories of Adam Smith. It defines self-interest as actions that provide individual benefits, arguing that when individuals act in their self-interest, they inadvertently contribute to the greater good through the creation of goods and services, fostering competition, and driving economic development. The essay examines the concept of rational self-interest in a free market economy, highlighting the roles of consumers and producers. It addresses counterarguments, considering whether self-interest can be viewed negatively or immorally, and ultimately concludes that the pursuit of self-interest, even in the form of seeking profit, can lead to benefits for both consumers and society. The essay further emphasizes the role of government in promoting competition and regulating self-interest within the market economy, and concludes that self-interest, rather than being inherently negative, is a fundamental driver of economic growth and societal benefit. The essay cites several sources to support its claims.

POL 2000 ANALYSIS OF
DEBATE

Table of Contents
MAIN BODY...................................................................................................................................3
REFERENCES................................................................................................................................6

MAIN BODY
Essay topic: Does the pursuit of self interest benefit society.
In the view and thoughts of Adam smith, who is father of modern economics defined self
interest as, benefits that are owned by individual (Self interest powerful or evil, 2018 ). Here, the
question rise does it benefit to the society or not. According to Adam smith, when every
individuals performs by their own role, they provide certain benefits to the society. Their self
interest acts by creating goods and services by which benefits are given to consumers and
producers.
Rational self interest in the free market economy, explains about, by purchasing the
goods and services and overall performing for the benefit of society with overall economic
development and well being to sell the goods and services. When goods and services are
exchanged freely by determining the value of goods with market interaction is known as
capitalism. Here the self interest of producer and consumer are the basic assumptions act
rationally. The concept widely used in this debate is rational, as it explains about the producers
and actions of consumers as they both get benefited either intrinsically or financially (Zingales,
2015).
However, when parties interact based on self interest, unintentionally both get benefited
out of it. As, it the normal outcome of market economy. As long as the competition gets multiply
in terms, among others the profit gets maximised eventually (Ehrenberg, J., 2017). As when a
firm enters into new market, the cost of goods and services are gradually reduced for the benefit
of own which renders benefit to the consumer and society automatically. Improved goods and
services that are made available to the consumers at lower cost increase the market share by
offering the product to consumer at less price.
Actions that elicit most of the personal benefit can be termed as self interest. Benefit that
are provided to the society or not is the motive of this debate to represent it. In the economy of
the market use of land, labour, capital are the resources taht are voluntarily decision are made
regarding their use and control (Sanford, 2017). Two forces including self interest and
competition, in the economy plays an prominent role. By describing about it Adam smith built
and foundation to understand about hte function sof market economies.

According to the thoughts and views of Adam smith, every human being perform their
actions and role out of self benefit and interest by which the market economy also get benefited.
Is being self interested is greedy? Or can we call it as immoral? We cannot make it as negative
connotations, or we should not consider it as immoral or negative kind of behaviour. In order vto
seek the goal of individual self interest is fulfiller (Berry and Wilcox, 2015). In ordered feeding
the family and to mete the needs of the family priority is given by individual to self interest. To
fulfil the needs of the family cannot be termed as immoral or negative.
Accordingly, while seeking money or goals, competition arise in terms of earning more
profit from the market economy. This also boost the competition, cheating in terms of food
adulteration, duplications and many more for the benefit of self interest (Volz and et.al., 2017).
Sometimes, high quality based products and services are also made available into less cost by
which consumers and producers both get benefited.
Adam smith also says to the producers, if they want more profit they concentrate on
making goods and services at lower cost. The quality of goods increases the money also will
increase gradually. They can also charge high prince, treat the consumers rudely, still self
interested person concentrate on the opportunities, in order to earn more profit. This promotes
the competition in market economy ( Zald, 2017).
Arguments made by Adam smith by considering complementary forces of self interest as
invisible hands. It is understood when, producer and consumer not non-performing to make
benefit to the society then their goal and objective is to earn money out of it. And when some one
concentrate on earning more money, the processing of providing goods and services are based on
quality rather than cheap and low (Stepan, 2015). The greatest value to the goods and services
are generated gradually by meeting the neds of the society. Here, the self interest proves the
benefit to the society by getting solely benefited.
The role of government is high in promoting competition in the market economy. As
there are enough firms in self regulating and getting benefit out of it in the competitive markets.
Those have to be check on self interest (Bosse and Phillips, 2016). As economists are very
confusing. Also they get disagree on basic of ideas mostly. But they agree as the role of self
interest are important to promote the growth of the economy.

In modern economy self interest cannot be taken for granted as it is majorly considered as
important. To motivate the performers bonuses and benefits are offered to the performers in
order to grab the results. Arguments are made on the self benefit by elaborating it is for self only
while Adam smith highlighted the point view, by concentrating largely on basic needs of the
family encourages individual to get benefited out of selling goods and services in one or the
other terms by meeting it successfully. In order to fulfil the needs of the family they also provide
benefit to society by rendering the products out of profit (Batson and et.al., 2016).
The needs and wants of the individual gets changed frequently which boost to perform
more at last but sill the basic concentration is made on the fulfilment of needs of the family and
self. Hence, it cannot be taken as negative or immoral, one who perform for self indirectly
perform for the society and market economy by rendering benefit (Etzioni, 2014).

REFERENCES
Books and Journal
Zingales, L., 2015. Presidential address: Does finance benefit society?. The Journal of
Finance. 70(4). pp.1327-1363.
Berry, J. M. and Wilcox, C., 2015. The interest group society. Routledge.
Zald, M. N., 2017. Social movements in an organizational society: Collected essays. Routledge.
Batson, C. D.,and et.al., 2016. Empathy and altruism. Oxford handbook of hypo-egoic
phenomena: Theory and research on the quiet ego, pp.161-174.
Bosse, D. A. and Phillips, R. A., 2016. Agency theory and bounded self-interest. Academy of
Management Review. 41(2). pp.276-297.
Sanford, N., 2017. Self and society: Social change and individual development. Routledge.
Volz, L.J., and et.al., 2017. Harm to self outweighs benefit to others in moral decision
making. Proceedings of the National Academy of Sciences, p.201706693.
Etzioni, A., 2014. Common good. John Wiley & Sons, Ltd.
Ehrenberg, J., 2017. Civil society: The critical history of an idea. NYU Press.
Stepan, A. C., 2015. The state and society: Peru in comparative perspective. Princeton
University Press.
Online
Self interest powerful or evil. 2018. [Online] Available through
<http://www.valuesandcapitalism.com/self-interest-a-powerful-force-for-good-and-evil/>