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      6 <title>Self-Interest
      7 - GNU Project - Free Software Foundation</title>
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     13 <div class="article reduced-width">
     14 <h2>Self-Interest</h2>
     15 
     16 <address class="byline">by Loyd Fueston</address>
     17 
     18 <p>
     19 Is Self-Interest Sufficient to Organize a Free Economy?</p>
     20 
     21 <p>
     22 The quick answer is, &ldquo;No.&rdquo; And few of the better-known
     23 theoreticians of the free-market have ever thought that self-interest
     24 was, or even could be, sufficient to organize, or long maintain, a
     25 free economy.  Among those theoreticians, Adam Smith is often regarded
     26 as having been the primary philosopher of self-interest. In a book
     27 written to correct a number of misunderstandings of Smith's teachings,
     28 we find the following summaries of Smith's view about
     29 self-interest:</p>
     30 
     31 <blockquote><p>
     32 Far from being an individualist, Smith believed it is the influence
     33 of society that transforms people into moral beings. He thought that
     34 people often misjudge their own self-interest.
     35 </p></blockquote>
     36 
     37 <p>
     38 Even more directly to the point:</p>
     39 
     40 <blockquote><p>
     41 [Adam Smith] regarded the attempt to explain all human behavior on
     42 the basis of self-interest as analytically misguided and morally
     43 pernicious.&nbsp;<a href="#fn1">[1]</a>
     44 </p></blockquote>
     45 
     46 <p>
     47 As Adam Smith certainly realized, self-interest will be one of the
     48 principal forces organizing economic activities in any society, but
     49 that is as true of the most repressive or brutal society as it is of
     50 a relatively free and open society. Most of us will not like the
     51 results of self-interest untempered by a respect for other creatures.
     52 As a recent example, in running their country to the disadvantage of
     53 most Soviet citizens, the leaders of the Communist Party and of the
     54 Soviet military and intelligence services were advancing their own
     55 self-interests, at least as they understood or misunderstood those
     56 interests.</p>
     57 <p>
     58 The advantages enjoyed by Americans over citizens of the Soviet
     59 countries, and the advantages we still enjoy over the nominally free
     60 citizens of Russia and other eastern European countries, are those of
     61 a society organized to allow a high percentage of Americans to act in
     62 such a way as to serve both their self-interest and some substantial
     63 stock of moral principles. Not only our habits and customs, but also
     64 our positive laws&mdash;such as those of copyright&mdash;enter
     65 into that organization of our society, for good or bad, but not in a
     66 morally neutral manner.</p>
     67 <p>
     68 Self-interest is not necessarily evil, though it can lead people to act
     69 in morally reprehensible ways. The love of self, and the consequent
     70 development of self-interest, is one aspect of a creature who is also
     71 a social, and hence moral, being. Self-interest itself can serve
     72 moral interests in a free society so long as that society has the
     73 proper foundations. The elements of those foundations include not only
     74 a populace sharing a substantial body of moral beliefs and habits but
     75 also the formal political structures, positive laws, and accepted
     76 court decisions capable of supporting both social order and personal
     77 freedom. Once those are in place, and once they have been
     78 internalized by the bulk of the citizens, then self-interest will
     79 provide a fuel of sorts to keep an economy functioning effectively
     80 without leading to immoral results on the whole. The question is
     81 always: Is our society organized properly, in its positive laws and
     82 in the habits we teach our children and reinforce in ourselves, so that
     83 self-interest and moral principles do not generally come into
     84 conflict?</p>
     85 <p>
     86 Those people aware of modern mathematics or of programming techniques
     87 should appreciate the recursive, and inherently unstable, interactions
     88 between individual morality and social structure. To oversimplify in
     89 a useful manner: People with substantial moral beliefs organize
     90 societies along those beliefs and those societies then begin to form
     91 the habits and beliefs of children, immigrants, etc. according to
     92 those same beliefs. Always, it is a messy historical process which
     93 can be destroyed or rerouted into less desirable paths. There is
     94 inevitably a question as to whether we are straying from a proper path
     95 and also a question as to how robust the society is, i.e., how much
     96 of a disturbance it would take to destroy much of what is good about that
     97 society.</p>
     98 <p>
     99 Sometimes, good people will decide that something has gone wrong and
    100 it is time to fight for a moral principle even if it becomes necessary
    101 to sacrifice, or at least qualify, their own self-interest. In the
    102 words of Thomas Sowell, a free-market theorist of our time:</p>
    103 
    104 <blockquote><p>
    105 There are, of course, noneconomic values.  Indeed, there are
    106 <em>only</em> noneconomic values. Economics is not a value itself but
    107 merely a method of trading off one value against another.  If
    108 statements about &ldquo;noneconomic values&rdquo; (or, more
    109 specifically, &ldquo;social values&rdquo; or &ldquo;human
    110 values&rdquo;) are meant to deny the inherent reality of trade-offs,
    111 or to exempt some particular value from the trade-off process, then
    112 such selfless ideals can be no more effectively demonstrated than by
    113 trading off financial gains in the interest of such ideals. This is an
    114 economic trade-off.&nbsp;<a href="#fn2">[2]</a>
    115 </p></blockquote>
    116 
    117 <p>
    118 In context, Professor Sowell was not arguing against those imputing
    119 some sort of moral power to self-interest; he was instead arguing
    120 against those who think there should be an easy path to the reform of
    121 a society which may have a particular moral defect. Those are two
    122 sides to the same coin&mdash;serving self-interest may put a person
    123 in conflict with moral values and the attempt to serve moral values
    124 may lead to some sacrifice of one's self-interest.</p>
    125 <p>
    126 Self-interest can be a powerful fuel for a society, at least when the
    127 citizens of that society are well-formed individuals, but there is
    128 no mystical or magical aspect to self-interest that guarantees moral
    129 results. Self-interest will lead to generally moral results to the
    130 extent that moral constraints, external but mostly internal, guide
    131 the actions of the self-interested parties. A society with the proper
    132 constraints does not come into existence by some act of magic, but
    133 rather by the acts of people who are aiming at a higher purpose, whether
    134 the preservation of liberty in the society as a whole or the
    135 preservation of a cooperative spirit within communities of
    136 programmers, or maybe both of those at the same time.</p>
    137 <div class="column-limit"></div>
    138 
    139 <h3 class="footnote">Footnotes</h3>
    140 <ol>
    141  <li id="fn1">Both quotes are from page 2 of <cite>Adam Smith: In His Time and
    142 Ours</cite>, Jerry Z. Muller, Princeton: Princeton University Press,
    143 1993.</li>
    144  <li id="fn2">From page 79 of <cite>Knowledge &amp; Decisions</cite>,
    145 Thomas Sowell, New York: Basic Books, 1980.</li>
    146 </ol>
    147 </div>
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    178 
    179 <p>Copyright &copy; 1998 Loyd
    180 Fueston <a href="mailto:fueston@banet.net">&lt;fueston@banet.net&gt;</a></p>
    181 
    182 <p>Verbatim copying and distribution of this entire article is
    183 permitted in any medium, provided this notice is preserved.</p>
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    186 
    187 <p class="unprintable">Updated:
    188 <!-- timestamp start -->
    189 $Date: 2021/10/01 10:44:35 $
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