Lecture 1 Ethics
butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest
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| butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity, but to their self-love, and never talk to them of our own necessities, but of their advantages. Nobody but a beggar chooses to depend chiefly upon the benevolence of his fellow citizens As it is by treaty, by barter, and by purchase, that we obtain from one another the greater part of those mutual good offices which we stand in need of We go through life, make some friends, but most transactions are done with strangers who we also depend on (along with family/friends). There are some animals that are alone type (not pack needy but we benefit from society. If you want something from somebody, you need to convince them it’s for their benefit as well. Everyone is looking out for themselves. 1. We are driven by self-interest (I want something) → iphone, better paying job, house. Creates demand 2. Division of labour → prompts people to trade resources for desired goods rather than make them themselves. Creates supply 3. Together, demand and supply create a market for exchanges. I offer what I am good at, others offer other things. 4. Buyers and sellers are rational they can recognize what improves their utility and act accordingly. Buyers and sellers are free they are not physically coerced to trade, nor are they acting out of desperation. The market is barrier-free: buyers and sellers can easily enter (eg, no dues required) and exit it. 5. If D & S operate under these conditions, then Eventually equilibrium will be achieved Only ordinary profits can be made A pareto optimal solution will be achieved in the market. Download 0.65 Mb. Share with your friends:
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