Wednesday, September 9, 2009

Greed vs. Self Interest

I awoke this morning thinking of the words of Milton Friedman talking about greed in an interview with Donahue many years ago. Mr. Friedman said, in effect, that greed is good. Greed is defined as "a selfish desire for more of something that is needed." I wonder this morning, since the basis of greed is selfishness, how it is that people (politicians, pundits, etc.) think they are able to gauge greed. Is it the lack of charitable giving that constitutes greed. How exactly does this greediness manifest itself?

If a person who makes $30,000 per year want to make $60,000 per year, is that greed? How about if the person who makes $10 million wants to make $20 million? Many would say the latter constitutes greed, but what if their motives are exactly the same? How do we measure greed? And in a day where socialism is vying for a larger share of the America's wealth bucket, who is to say where self-interest ends and wealth begins? The free market crowd would say that self-interest is what makes the market work. Mr. Friedman was fond of using the example of the self-interest of people all over the world working to provide for people they don't even know, or what Adam Smith called the invisible hand of the market. If I want to make a better life for my family and have a few things in this life, is that self-interest or greed? What if I want to grow my company and make better lives for the people who work for me, greed or self interest? What if my desire is to have so much money that I can start my own venture capital corp and bless other hungry entrepreneurs by funding their ideas and helping to make their dreams come true, self-interest or greed? Does anyone have a ruler, a measuring stick to define where the line is between the honest desire and the evil intent?

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