Reference no: EM13346733
In 1776 Adam Smith wrote in his book "The Wealth of Nations":
"As every individual, therefore, endeavors as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labors to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. It is an affectation, indeed, not very common among merchants, and very few words need be employed in dissuading them from it. "
He suggests that the choices individuals make in their self-interest result in promoting the social interest. Since then several Nobel Prizes have been awarded to economists who have worked on the question including Ken Arrow, John Hicks, and Gerard Debreu, as well as John Nash of "Beautiful Mind" fame.
Under what circumstances, if any, do you believe that the pursuit of self- interest can promote outcomes that are good for the group as a whole?
Your subject selection should be based on relatively current actual events. Some possible subject categories are as follows, but your group should choose a specific situation within these categories (or others) to keep the paper narrow and focused.
1) Globalization
2) Information Age Economy
3) Environment
4) Financial and Economic Stability