Comparing Greed And Incentives
Greed and Incentives. Is there a difference?
Eric Simmons
Arkansas State University Beebe
Abstract
This paper explores greed and incentives in an economical perspective. Greed is a driving factor in a free market economy, and helps to further the process of innovation and free trade. Incentives are the driving factor behind greed. They are what motivate people to produce goods and services to other people in order to make a profit for their own self-interest. In order to help make clear the difference of greed and incentives, this paper will discuss a quote from Adam Smith’s book, Wealth of Nations, along with discussing innovation, the difference of acting in one’s self interest and being greedy, and fairness or greed in …show more content…
Greed can cause people to stop at nothing to obtain what they desire most, without considering the consequences that may come along with their quest to obtain the thing they want most. Incentive is what motivates and encourages someone to do something. Incentives are used to persuade people in to doing something. For example, if you have ever purchased a kids meal just to get the toy, you purchased it with the incentive of receiving. Incentives can be negative or positive. Negative incentives punish someone financially for making certain choices and behaving a certain way. Positive incentives, however, reward someone financially for making certain choices or behaving in a certain way (Economic Incentives in Our Community). Greed and incentives have some similarities, such as, both are only concerned about with self-interest. They are also different, greed is the selfish desire, whereas, incentives are the motivations. Incentives are what cause people to be …show more content…
According to Milton Freedman, “The world runs on individuals pursuing their separate interest.” Pursuing one’s self interest is the same as greed. But when you consider history, and our economy, the only cases where people have escaped severe poverty are in nations that have free market economies. Because of the free market system, prices are set for goods and services freely by consent between sellers and consumers, fairness is achieved. But the desire for someone to start producing a good is caused by the incentives from the profits, caused by the greedy desire of wanting to make more
Eric Simmons
Arkansas State University Beebe
Abstract
This paper explores greed and incentives in an economical perspective. Greed is a driving factor in a free market economy, and helps to further the process of innovation and free trade. Incentives are the driving factor behind greed. They are what motivate people to produce goods and services to other people in order to make a profit for their own self-interest. In order to help make clear the difference of greed and incentives, this paper will discuss a quote from Adam Smith’s book, Wealth of Nations, along with discussing innovation, the difference of acting in one’s self interest and being greedy, and fairness or greed in …show more content…
Greed can cause people to stop at nothing to obtain what they desire most, without considering the consequences that may come along with their quest to obtain the thing they want most. Incentive is what motivates and encourages someone to do something. Incentives are used to persuade people in to doing something. For example, if you have ever purchased a kids meal just to get the toy, you purchased it with the incentive of receiving. Incentives can be negative or positive. Negative incentives punish someone financially for making certain choices and behaving a certain way. Positive incentives, however, reward someone financially for making certain choices or behaving in a certain way (Economic Incentives in Our Community). Greed and incentives have some similarities, such as, both are only concerned about with self-interest. They are also different, greed is the selfish desire, whereas, incentives are the motivations. Incentives are what cause people to be …show more content…
According to Milton Freedman, “The world runs on individuals pursuing their separate interest.” Pursuing one’s self interest is the same as greed. But when you consider history, and our economy, the only cases where people have escaped severe poverty are in nations that have free market economies. Because of the free market system, prices are set for goods and services freely by consent between sellers and consumers, fairness is achieved. But the desire for someone to start producing a good is caused by the incentives from the profits, caused by the greedy desire of wanting to make more