The Demoralizing Trap of Keynesianism

Smith, Daniel J.; Alvarez, Sean Patrick

doi:10.2139/ssrn.2757161

Cited by 2 publications

(1 citation statement)

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“…The system in question is one in which entrepreneurship is not so much suppressed, but corrupted, meaning that entrepreneurially skilled individuals are incentivized to circumvent the meritocracy of market competition by engaging in various forms of rent-seeking and maintaining their infl uence through political favoritism. Needless to say, in the absence of appropriate cultural and spiritual restraints -that is, restraints which constitute the most fundamental level of the ethical structure of production -this kind of incentive structure is bound to generate a demoralizing rush to the bottom among businesspeople, driving out those who are unwilling to compromise their principles (Smith and Alvarez, 2017).…”

Section: Can the Great Enrichment Continue?mentioning

confidence: 99%

The ethical structure of production

Wiśniewski¹

2022

ekon

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The main contention of the present paper is that the capital structure of production, the preservation of which is often regarded as the essence of economic sustainability, needs to be grounded in the parallel ethical structure of production in order to remain intact. The article identifies several tendencies conducive to the erosion of the ethical production structure. Subsequently, it suggests that some of these tendencies may well be strongly present in today’s economic and cultural climate in the so-called developed world, thereby jeopardizing its prospects for continued economic growth and progress. Finally, the author indicates that only a widespread and well-established understanding of the relationship between the capital structure of production and its ethical counterpart can prevent a retrogression from the current, historically unprecedented level of global economic well-being.

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Section: Can the Great Enrichment Continue?mentioning

confidence: 99%