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Online since 1999

The fallacy of self-interest

8/4/2022

6 Comments

 
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The basis of economics is people making decisions for their own self-interests. Makes sense. We all get it. Until we realize that living life is much more than economics and people don't act that way at all, especially for leaders. It's not even close.

Let me explain.

Take an example of a father. He usually gets up early. He gets ready for work. He thinks about his boss. He thinks about his coworkers. He thinks about the clients. In addition, he thinks about his family; he thinks about his spouse and children. He even thinks about his dogs and cats. What's more meaningful to him than his family? Nothing else.

Same goes for the mother, if not more so.

In short, we think about others all the time. Our self-interests seem like an afterthought. If there is any self-interest at all, it's to achieve heartsease or peace of mind knowing others will be fine.

Economics is important for a higher standard of living. It's how resources can be efficiently allocated. But the way people make decisions is ultimately based on how they can obtain the most benefit for others in their everyday lives. They are vastly more important.

In Chapter 10 of The Art of War, Sun Tzu sums up the main objective of a leader: 
"The general who does not advance to seek glory, or does not withdraw to avoid punishment, but cares for only the people's security and promotes the people's interests, is the nation's treasure."
So not unlike any modern-day leader, Sun Tzu's decisions were every bit selfless. After all, it doesn't take much to take care of yourself. But it takes the skills and wisdom of a Sun Tzu to take care of people -- holding back our emotions, extending and risking ourselves for the safety and comfort of others.
6 Comments
Rod Leaverton
8/4/2022 07:54:31 pm

Love it, Thomas! I've always resonated with this particular passage. It's about aspiring to be a catalyst for the well-being of those around us. As humans, we are actualized through our contextualized relations (even our dogs and cats). :-)

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Thomas Huynh link
8/4/2022 08:22:45 pm

Rod, I'm so happy you're connecting with Sun Tzu's wisdom. For me personally -- and I'm sure it's the case for you -- what is life without relationships? People worry about survival or striving for success but what is the point without being with loved ones.

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Ken link
8/4/2022 10:18:15 pm

Economics is realized by the principle of satisfying self-interest through service to others.

One must produce before being able to consume, whether it be for self or others. It just so happens that producing for others and expanding the circle of trade yields the highest living standards for all concerned. In this way, self-interest is channeled into peaceful and productive social cooperation.

Expending resources in ways that do not satisfy consumer desire is, by definition, uneconomical and, when unimpeded by political intervention, will be met by loss in the marketplace rather than profit.

Profit and loss feedback is essential to discipline entrepreneurs and firms toward more economical resource use in service to the customer.

Self-interest is an inescapable fact of all human action, yet it is the discipline of a marketplace free from coercion that directs that self-interest toward serving others.

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Trey Davis
8/5/2022 04:32:09 am

Very poignant Ken. Its all about solving problems for others.

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Trey Davis
8/5/2022 04:36:48 am

My work can be fulfilling. It can bring me great satisfaction. But if I am not careful that satisfaction can become a vice. While work is important and I was made to get out of bed every morning and perform my task, it should not encompass me. Step away from time to time, investigate the matter and make certain that my priorities are in order. Do not allow work to steal away precious moments with my family. Take time with friends, have some fun, don altruism and always be cognizant that as Jacob Marley said, “Mankind should be our business”.

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Silaz Carbryck
8/5/2022 06:03:49 am

Thank you Sonshi. Although sometimes it may still be nesesary to advance into the world with the intention of building some level of fame, as it can greatly aid in achieving our victories, even when we do not desire any such fame.

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