The Evolution of Self-Interested and Altruistic Economic Thought

This chapter explores the evolution of economic thought from a self-interested approach to one incorporating altruistic motives, focusing on the historical context and philosophical debates surrounding capitalism and socialism. The chapter begins by discussing Adam Smith’s idea that individual self-interest inadvertently promotes the common good through the market’s invisible hand, juxtaposing this with Marx’s critique of systemic exploitation under capitalism. It delves into the theories of key economists like Weber and Schumpeter, who analyzed the roles of bureaucratic and charismatic leadership in shaping economic systems and societal changes. The narrative shifts toward modern economic challenges, highlighting the potential of the “Economy of Goodness” to address these through ethical business practices and social entrepreneurship. It suggests that incorporating morality and altruism into economic activities can lead to more equitable societies, contrasting traditional capitalist motivations with emerging social enterprise models that prioritize public welfare over personal gains.