Oct3rd2005

Economics 101: People Respond To Incentives

Economist Walter Williams in a somewhat dated article on economics 101 writes:

It’s popular to condemn greed, but it’s greed that gets wonderful things done. When I say greed, I don’t mean stealing, fraud, misrepresentation or other forms of dishonesty. I mean people trying to get as much as they can for themselves. We don’t give second thought to the many wonderful things others do for us. Detroit assembly-line workers get up at the crack of dawn to produce the car that you enjoy. Farm workers toil in the blazing sun gathering grapes for our wine. Snowplow drivers brave blizzards just so we can have access to our roads. Do you think these people make these personal sacrifices because they care about us? My bet is that they don’t give a hoot. Instead, they along with their bosses do these wonderful things for us because they want more for themselves.

People in the education and political establishments pretend they’re not motivated by such “callous” motives as greed and profits. These people “care” about us, but from which areas of our lives do we derive the greatest pleasures and have the fewest complaints, and from which areas do we have the greatest headaches and complaints? We tend to have a high satisfaction level with goods and services like computers, cell phones, movies, clothing and supermarkets. These are areas where the motivations are greed and profits. Our greatest dissatisfaction is in areas of caring and no profit motive such as public education, postal services and politics. Give me greed and profits, and you can keep the caring.

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • del.icio.us
  • YahooMyWeb

4 Responses to “Economics 101: People Respond To Incentives”


  1. Gravatar Icon 1 hal Oct 3rd, 2005 at 8:29 pm

    Read how the hispanics were rejected AGAIN after the Bush Administration used them to win a presidency vote!

    http://news.yahoo.com/s/ap/20051003/ap_on_go_su_co/miers_hispanics

    Let me know what you think.

  2. Gravatar Icon 2 HispanicPundit Oct 3rd, 2005 at 8:38 pm

    If Hispanics were rejected, it wasn’t because of Republicans, it was because of Democrats.

  3. Gravatar Icon 3 Shelonda Oct 4th, 2005 at 1:01 pm

    Very Machiavellian of you…but I am starting to see your point. Are there no gratuitous good deeds? Do people always expect something in return? I believe in KARMA, but is that why I am a good person…because I feel good will come back to me? Are we all inheritantly evil and self-centered? It may be realistic, but I have to believe the world is a better place…and HUMANS are not so easily explained.
    : ) shelonda

  4. Gravatar Icon 4 HispanicPundit Oct 4th, 2005 at 1:54 pm

    I do not see ’self-interest’ and ‘gratuitous good deeds’ as mutually exclusive. The two can, and often, do go together.

Leave a Reply