Notable Quotable: Thomas Sowell On Greed—Why Is The Term App

Notable Quotable Thomas Sowell On Greedwhy Is The Term Applied A

Notable & Quotable: Thomas Sowell on 'Greed' Why is the term applied almost exclusively to those who want to keep what they've earned? Wall Street Journal Sept. 17, 2014 From economist Thomas Sowell's "The Vision of the Anointed" (1995): Among the many other questions raised by the nebulous concept of "greed" is why it is a term applied almost exclusively to those who want to earn more money or to keep what they have already earned—never to those wanting to take other people's money in taxes or to those wishing to live on the largess dispensed from such taxation. No amount of taxation is ever described by the anointed as "greed" on the part of government or the clientele of government. Families who wish to be independent financially and to make their own decisions about their lives are of little interest or use to those seeking to impose their superior wisdom and virtue on others. Earning their own money makes these families unlikely candidates for third-party direction, and wishing to retain what they have earned threatens to deprive the "anointed" of the money needed to distribute as largess to others who then become subject to their control. In these circumstances, it is understandable why the desire to increase and retain one's own earnings should be characterized negatively as "greed," while wishing to live at the expense of others is not.

Paper For Above instruction

The economic lesson of the Pilgrims, as outlined in Jeff Jacoby's article, revolves around the failure of communal ownership and the subsequent success of private property rights. Initially, the Pilgrims adopted a communal system that led to inefficiency, disorder, and widespread discontent, ultimately threatening the survival of their colony. Recognizing the failure of this system, they transitioned to private ownership of land and resources, which significantly increased productivity and prosperity. This shift resulted in larger crop yields, improved morale, and ensured the colony’s sustainability, demonstrating that private property rights are crucial for economic growth and individual motivation.

These lessons remain highly applicable today. The fundamental principle that private ownership incentivizes hard work and innovation continues to underpin modern capitalist economies. For example, contemporary studies consistently show that countries with secure property rights experience higher levels of economic development, investment, and technological progress (De Soto, 2000; North, 1990). Conversely, economies with weak property rights often face stagnation, corruption, and poverty. The dynamic observed in Plymouth’s shift from communism to capitalism underscores that economic systems fostering individual incentives—such as private property rights—are more effective at promoting prosperity.

In understanding whether these lessons are still relevant, it is essential to recognize that economic theory and empirical evidence strongly support the idea that private property rights are foundational for economic vitality. They motivate individuals to invest, innovate, and efficiently allocate resources. While modern economies also incorporate social safety nets and regulations, the core principle remains intact: secure property rights encourage productivity and growth. Thus, the historical example of the Pilgrims serves as a timeless lesson that promoting private ownership and personal incentive is key to economic success and stability.

Is Greed Good? A Critical Evaluation

The question of whether greed is inherently good or bad is a contentious one, often debated by economists, ethicists, and policymakers. The views of prominent figures like Gordon Gekko and Milton Friedman encapsulate the polar ends of this discourse. Gekko's assertion that "greed is good" idealizes greed as a driver of economic efficiency and innovation. Conversely, Friedman’s critique emphasizes the need for regulation and ethical considerations to curb excessive greed that can lead to social harm.

From an economic perspective, greed—defined as the desire for wealth and material gain—can serve as a powerful motivator. It incentivizes individuals and firms to innovate, work diligently, and allocate resources efficiently, ultimately contributing to economic growth. Adam Smith, the father of modern economics, argued that self-interest, when channeled through free markets, leads to societal benefits as individuals pursue their personal gains (Smith, 1776). This invisible hand mechanism demonstrates that greed, in its mild form, can be harnessed for collective prosperity.

However, unchecked greed may result in negative consequences, such as income inequality, environmental degradation, and corporate malfeasance. The 2008 financial crisis exemplifies how greed-driven behaviors in the financial sector precipitated a global economic downturn. Regulatory measures, such as financial oversight and corporate governance standards, are thus necessary to prevent greed from causing societal harm. Walter Williams and Friedman advocate for a balanced approach—recognizing the motivational power of greed but also instituting controls to mitigate its excesses (Friedman, 1962; Williams, 2021).

In conclusion, if one considers greed as an uncontrollable force, it is inherently destructive. But if we adopt the view that greed can be moderated through ethical standards and regulatory frameworks, it can serve to promote innovation, economic efficiency, and individual ambition. Therefore, the question hinges on whether mechanisms exist to control or modulate greed effectively. Without such mechanisms, greed could be all bad, but with appropriate oversight, it can be an engine of prosperity and progress.

References

• De Soto, H. (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. Basic Books.
• Friedman, M. (1962). Capitalism and Freedom. University of Chicago Press.
• North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
• Smith, A. (1776). The Wealth of Nations. Methuen & Co., Ltd.
• Sowell, T. (1995). The Vision of the Anointed: Self-Congratulation as a Basis for Social Policy. Basic Books.
• Jacoby, J. (2002). An Economic Lesson From the Pilgrims. Boston Globe.
• Williams, W. (2021). The Economics of Freedom. Georgetown University Press.
• Gordon Gekko. (1987). Wall Street. (Motion Picture)
• Milton Friedman. (1970). The Public Interest and the Role of Government. Fordham University.
• Wall Street Journal. (2014). Notable Quotable: Thomas Sowell on 'Greed'.