Psychological Egoism: the thesis that everone is always motivated to act in his or her
perceiced self interest
-we are psychologically concentreted in a way- self-centrelized, self-directed
-everything you do is motivated by the self
-opposed to altruism
Ethical Egoism: the thesis that one ought to pursue acts which promote one's self-
interest or well being
-argue that you outght not to be altruism, you only do so if there is something for
you(may be pleasure)
-argues that all it matters is the self, not the others
IS I OUGHT distinction
-the distinction from IS and outght
-IS: empirical descriptive,
-OUGHT: normative , prescriptive of how people are, how people want to be. (it could be
not that case )
BUT if you are a moral being, you are actually opposed to egoism, who would not to
serve for their own good while hurting other people. Ethic is about the other.
-egoism is somehow found in Adam Smith's idea.
Self interest in Adam Smith's weath of nations
"It is not from the benevidence of the butcher, the brewer or the baker that we expect our
dinner, but from regard for their self interest. We address ourselves not to their humanity
but to the self-love, and never talk to them of our own necessities but of heir
-We don't talk about other people's necessities, but only about exchange for our own
necessities. -if you are the baker, you open the bakery because of self-interest. I am not interest in
feeding you, i want your money.
-baker VS. Consumer. The consumer is not interest in baker's interest, they are hungery
they only want the bread. The baker wants cash, which consumers have. That is why
they come together to the market. They both have what the other interested in.
-the invisible hand leads to that the market is self regulating.
-the market self clears and always goes back to equilibrium--all it happens by it self, all
motivated by self-interest
-try to mak economy scientific
-try to conveice
-by referencing his book, they can justify self interest, economy justify itself
-the point: business ethics makes economical sense
-the market works well when the market participants
textbook section 6, page 27; section 4; public good; section 5, page 26, distribution
start from:...I am brief ...first the important of business ethics..
Motivation for exchange
What is production efficiency
--all related to Adam Smith's points
Ethics are somehow ..... when it comes to business and economics
talking about economics, you are also talking about good, public good. -modern economics are not tied with moral , ethics seems lost
argue humanity, justice.....
-Adam Smith is been misinterpreted
ethic-free economic view--misterpretation of Adam Smith
Did Smith think that economic operation and business activities consist only of
exchanges o its kind?
Did Smith think that the result would be just as good if the businessses involved, driven
by self interest, were to defroud consumers, or the consumers in question were to
attempt to sindle the sellers?
-motivated by self-interest, just because so you are not to be greedy. It can be regulated
by ethics at the same time.
-economy is based on people's self interest, but ethics won't hurt the development of
Absolutely not: Smith's concening the motivation of enchange....
1 laws of the market
2 Harmony and prosperti of society, welfare of the consumer
Free market competition and social unitity
-its on owl
A person in the market place, motivated by self-interest
try to promote his or her own end, but not society's ends
-does not benefits the society, does not know how either When you are in the market place, and exchange with other, you ARE benefit the society