There is a superb article about prosperity and the market by
Hanauer and Beinhocker in Democracy
Journal:
In summary, it addresses the following problem. Given that markets are not perfectly efficient, and
people are not perfectly rational, and money is a poor measure of prosperity, how
do you measure prosperity, and how do you increase it? They suggest solutions are the
markers for prosperity, not financial wealth.
So Western society is prosperous because it has medical solutions,
transport solutions etc etc.
All very nice, and I basked in a glow of intellectual
satisfaction as I read it.
Then in the comments section, I saw the following by a chap
called George Wells:
The article
fails to consider the effect of sociopaths and their behavior. The sociopaths
have convinced us that corporations, and by implication, all business has a
singular purpose: to make the capitalist more wealthy. Anything, and everything
that stands in the way of pure profit is wrong even if it means delivering
harmful products or not producing beneficial ones because they are not
sufficiently profitable.
Why is it
that humans reward sociopathic behavior? That, to me, is the real question.
Yeah, George! You hit
the nail on the head.
(If you think his judgement is too harsh, go read Ben
Goldacre.)
I think the challenge for us chattering classes in the
behavioural science arena is to solve the problem of sociopathy in the
workplace and the family.