The purpose of this essay is to argue whether "economics is a friend or a foe of ethics". A concept discussed by Norman Bowie, A.K Gavai and Milton Friedman. Before moving into further detail, what is economics and ethics all about? According to the dictionary, "economics is the science that deals with the production, distribution and consumption of goods and services or the material welfare of human kind." Whereas ethics are the "values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions".
That being said, someone can have selfish moments while still being a good person and caring for others. There doesn't have to be polar opposites when it comes to selfishness versus selflessness. There's so much emphasis on putting others before oneself that people often forget to look out for their own needs, as shown in this book. Ayn Rand successfully captures the negatives of an overrated ideology and presents an unorthodox perspective on the matter. In conclusion, Equality's true motives behind his work are much more selfish than they first appear to be.
Prospect theory Young Joon Suh Definition Prospect theory is a theory of decision making that involves risk and uncertainty. It is an economic theory with psychological elements that aims to explain how people decide between alternatives with probabilistic gains and losses. The theory is based on the premise that people make choices based upon their psychological value of potential losses and gains rather than the final outcome. Prospect theory explains why people make decisions that deviate from rational decision making by examining how the expected outcomes of alternative choices are perceived (Kahneman & Tversky, 1979). Historical background Until 1970s, the dominant theory for decision making research was Expected utility theory (Barberis,
An individual form its subjective judgement of opinion and ability in comparison with other individuals. If there are group differences between individuals, it has been shown that their behaviour will change in order to alter the situation and minimise those differences between individuals. Actions taken to reduce discrepancies in opinion are rather uncomplicated to uniform in comparison to the case of abilities where two conflicting forces are present. The first forces action to reduce the discrepancy but the other is the willingness to do better and better, which results in the failure of reaching a uniform and a social steady state. This is demonstrated in competitive behaviour, actions to protect dominance and in different types of cooperative behaviour (Festinger, 1954, pp.9).
Some scholars argue that shame typically involves being negatively evaluated by others and guilt involves being negatively evaluated by oneself. Many associate shame with exposing one’s defective self to others thus having an external orientation and whereas guilt is associated with the fear of not living up to one’s own standards and having an internal orientation. In conclusion in the dominant models of guilt and shame, guilt leads to reparative action whereas shame does not. The authors points out to the examples in the US contexts. They argue that experiencing guilt leads to higher self-esteem and increases in empathy and perspective taking.
Fear is driving America. Fear of saying the wrong thing, fear of thinking the wrong thing, even fear of dressing the wrong way. While this fear is prevalent, how each person responds to it is not the same. One group fears so much about offending others that they seek out others to tell them what to do, what to think, and how to act. This fear is carried out to the point that they see certain freedoms as less and less important.
One of the leading theories of human decision making is Prospect Theory (Kahneman & Tversky, 1979). It is a more psychologically accurate approach to describing human decision making, compared to the expected utility theory. In particular, an important element of prospect theory, reference-dependent preferences, is based on the main idea that an individual’s assessment of an outcome, is not only determined by the outcome itself but how the outcome compares to a reference point. In doing so, it typically assumes that outcomes relative to the reference point; are evaluated by an S-shaped value function – capturing two key components: loss aversion (suggesting losses hurt more than gains feel good) and diminishing sensitivity (by being convex
Bloom states: “And it is subject to bias- both laboratory studies and anecdotal experiences show that empathy flows most for those who look like us, who are attractive and who are non-threatening and familiar” (“Empathy Can Lead” 1). Empathy’s flaw that is bias makes empathy a lackluster guide to moral action. This bias can lead to unfair and hasty assumptions, which in turn, obstructs truth and reason. One’s empathy could easily be turned unfairly for or against other people due to the bias that empathy causes. The assumption that empathy does not lead to bias is simply not true because the emotion that comes from empathy leads to bias.
So people make irrational decisions all the time. It is said that any decision-making is better if its positive and negative outcomes are analyzed, but in irrational decisions one dose not carefully analyze the outcomes (Kepner & Tregoe, 1965). Thus irrational decisions have always thought to be negative and therefore have more negative effects than positive effects. Irrational counterproductive polices is when a person has a clear goal and wants to achieve it but eventually gains opposite result that is mostly negative. After carefully examining both the side of this topic it is clear that irrational counter productive polices stimulates rejection, decision fatigue, and self-regulation
It refers to the feelings people develop concerning the level of control over their destinies. People with internal locus of control are more likely to take responsibility for their actions, usually have a strong sense of self-efficacy. Whereas, people with external locus of control blame outside forces for their circumstances, do not believe that they can change their situation through their own efforts, and frequently feel hopeless or powerless in the face of difficult
The balance is essential between both because if he practices generosity it becomes so self-consuming that the more you practice it, the less you will be able to continue the practice, this is due to the use of all resource and prevents the continued generosity; this would inevitably lead to the state despising the prince. “Therefore, it is shrewder to cultivate a reputation for meanness, which will lead to notoriety but not hatred. This is better than being forced, through wanted to be considered generous, to incur a reputation for rapacity, which will lead to notoriety and to hatred as well”. Cruelty and mercifulness, A question arises whether it is better to be loved or feared, or vice versa? “My view is that it is desirable to be both loved and feared; but it is difficult to achieve both and, if one of them has to be lacking, it is much safer to be feared than loved”.
Jean –Jacques Rousseau believed that technology, knowledge and science corrupts human beings, and that human nature is good. The more knowledge a person have, many take greed into their hand or the more money a person has they believe they are better than another person. Some also believe the more money they have, the more problems they will have in their life. There is a saying that goes “it’s better to be poor and happy than being rich and miserable.” In the case of technology, it is something that corrupts human beings. People do not think for themselves anymore, they have become inadequate thinkers.