Is Greed Still Good, Mr Gecko?
In the mid 1980's the movie Wall Street seemed to accurately capture the themes of the day. Michael Douglas starred in the movie as Gordon Gecko - a brilliant, driven and corrupt stock broker. At one point, Gecko utters a famous line, "Greed is Good." To what extent, in capitalism, is greed good? In what sense is greed bad? Can greed be constructive? If so, how?
Greed is good in the sense that it represents economic agents, or people, acting in their own self interest. In a market economy, it is the actions of all of the economic agents acting in self interest that leads to an efficient allocation of resources. Consider a buyer and a seller of any good. The buyer has a certain willingness to pay and will pay anything less than or equal to that ...
Capitalism and greed are correlated. The expert determines whether Greed is still good.