Self-interest Is Not Selfish

Composed in Boise, Idaho--

Self-employed business people are often accused of flagrant self-promotion.  The underlying accusation is entreprenuers must be selfish since they have an abundant interest in themselves.  I'm sure some entreprenuers are selfish.  Most are not.  They are merely looking after their own interests.

Everyone from Ayn Rand (novelist) to Gordon Gekko (fictional corporate spokesperson from the movie Wall Street) have gone on record about the merits of selfishness.  "Greed is good," said Michael Douglas's movie character, Gekko. 

It's important to note the distinction between greed and self-interest.  By definition, both selfishness and greed are ego-centric qualities that exclude concern for others.  A person who possesses self-interest, however, can also be interested in others. 

I believe self-interest to be a virtue.  I also think that it's possible to possess self-interest without being selfish or greedy.

Adam Smith (1723-1790), author of The Wealth of Nations, didn't confuse self-interest with greed.  Smith recognized that greedy citizens and business owners would certainly try to take advantage of the system. 

His famous hypothetical example was of a selfish butcher who over charges for meat because it is in his best interest do to so.   Smith argued that the butcher, as a business owner, had the right to charge whatever price he wanted.  In other words, he can and should charge whatever he can get customers to pay.

Adam Smith was an economist and he trusted what he called The Invisible Hand to provide systems to keep an individual's greed from usurping society.  Sure enough, the laws of supply and demand would keep the butcher from becoming too greedy or too selfish. 

Of course, the laws of supply and demand and a free market economy are examples of The Invisible Hand.  As the young United States matured, legislators enacted specific anti-trust laws and rules to discourage collusion.   

I encourage my consulting clients, audience members and readers to become more interested in themselves.  This is sometimes misconstrued as a directive to be selfish.  Yet, one can be interested in himself or herself without being selfish.  Indeed, rational people are expected to act in their own best interest. 

My friend Duane Scherer reminds me that the natural order of things calls for people to plan, execute and become renumerated.  Getting compensated isn't selfish, is it?

Comments

[Steve Atkinson]

Aren't we all always doing some sort of self-promotion. It really doesn't matter whether we are doing it to promote our business or our hobbies.

Part of self-promotion is networking, and when you really get down to it, "Life is nothing more than networking".

[Chad Smith]

An excellent update (addendum?) to Adam Smith's, The Wealth of Nations, is Bob Reich's, The Work of Nations, for those interested in economics and political-economics...

Chad Smith
www.thegmblog.com

[k.d.]

It is greed only if you covet someone else's property - Other People's Money