Unlike the classic
example of the chicken and the egg, the question of the altruist and the
economist is much more easily answered. A defining part of human evolution was
the want to help others. Early humans that acted selflessly, for the greater
good of their family, or tribe increased the odds of survival. Humans do not
survive well on their own. Therefore altruism is an evolutionary trait that
lives on in man. To paraphrase Adam Smith it is a principle in our nature, and
we derive nothing but the pleasure in seeing it. This is not necessarily true
as we can view unselfishness as an evolutionary advantage. However Smith was an
economist, and as such held a more calculated world view. According to Smith an
economy can function and prosper without any altruism at play.
The
Invisible hand that guides the economy is the spontaneous alignments of the
market. The economy does not exist because society wants it to exist, it does
not exist because the government mandates it so, and it does not exist so that
people can help one another. The economy
functions on the personal interests of individuals. Tomorrow if everyone became
apathetic towards everyone else the economy would still function. People will
still go to their jobs, buy groceries, pay their bills. As a people we would be
a sorry lot, but our economy would continue to thrive. It is important to note
that when I talk about an apathetic society I mean that people do not wish each
other good or ill. As Adam Smith states
“It is not from the benevolence of the butcher, the brewer,
or the baker, that we expect our dinner, but from their regard to their own
interest ...”
The
baker will continue to bake, not because he enjoys providing food for his
customers, but because he will receive compensation. This is simple enough but
we must also consider jobs that seem to rely on altruism. For instance why
would anyone join a volunteer firefighting station out of city limits? In an
apathetic society there would seemingly be no reason for individuals to risk
their lives, or devote their time to such a cause without some sort of payment.
The people who used to benefit from volunteer firefighters must now choose to
pool their resources to employ firefighters, or save their money and take their
chances. If they choose to employ a few firefighters the economy will have
benefited as a new sector in that area will have developed. If the town does
not decide to compensate the firefighters then those individuals may choose to
find a job in town, or spend time with their apathetic family. The takeaway
here is that the economy would still function with or without the volunteer
fire department. There are so few jobs inspired by Altruism that they can be
considered negligible to the economy as a whole.
Adam Smith wrote that human nature
was inherently good. He also wrote that the economy functioned without any need
for goodwill. These are not mutually exclusive statements. Two separate book, two
separate messages to convey. It is good that we have altruism in our society
that shows itself in volunteer fire departments. It is also good that the
economy does not need altruism to function. An economy reliant upon good deeds
would be short lived indeed.
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