,
4 tweets,
1 min read
Read on Twitter
1/ What's the relationship between markets and morality?
I'd define markets as incentives, e.g. you need to pay someone to make them work for you, or you need to pay someone to build something for you.
In a way, morality starts where markets end.
I'd define markets as incentives, e.g. you need to pay someone to make them work for you, or you need to pay someone to build something for you.
In a way, morality starts where markets end.
2/ If Adam is getting paid to teach a child, Adam's act of teaching is not necessarily moral - he is being rewarded by the market for his deed.
But if Adam teaches a child for no compensation or recognition, but only to help the child, then the act may be called "moral".
But if Adam teaches a child for no compensation or recognition, but only to help the child, then the act may be called "moral".
3/ A healthy society needs both markets and morality. Markets to put bread on the table, and morality to create love and trust between peoples.
For example, see Ernst Fehr's terrific work who shows how incentives can "crowd out" pro-social behavior.
aeaweb.org/articles?id=10…
For example, see Ernst Fehr's terrific work who shows how incentives can "crowd out" pro-social behavior.
aeaweb.org/articles?id=10…
4/ My fear is that in a world where more and more of human activity and interactions are "monetized", we are losing the moral balance. For example, the chinese social credit score system is a moral nightmare.
Let's hope there remains some human discretion to do good - or bad.
Let's hope there remains some human discretion to do good - or bad.
