Class Notes Name Juana Firacative

Topic The parable of the steel company Class Group A

Speaker ___________________________ Date 11/0372021

Questions/Main Ideas Notes

conomists maintain that there is self-
interest, but also economic incentives,
that is why we work, but will it be for self-
interest only?

A Japanese director comments that

economists do not understand the real
world, that workers are expected to work
for the good of the company, which is the
limitation of current economists.

Large companies imply that several people

are hired, so the trust in them is also very
great, worse this can end in theft and
corruption, worse we trust that not, so it is
expected that people will not be so selfish.

The workers are chosen by interviews and

etc., they enter to work for the company,
avoiding an internal conflict, which is close
to the theory of the invisible hand, which
shows that the human being is not so
selfish and amoral .

The worker is managed with incentives

and disincentives, such as announcements
of layoffs or rules, observation, which
makes our self-interest equal or consistent
with that of the company.

Greed leads us to great evils, but greed

does not depend on what economy we are
in, it is something implicit in the human
being, the existence of it cannot be
denied, it is natural, and it is not only
because of capitalism.

Capitalism is not at the source, but a great

motivator for it, so it is assumed that in a
free market, it decreases, as for example
in socialism it was based on altruism.

without punishment, a crisis is reached

Summary:
Economists have debated whether we really understand the world or not, and it has been seen that not, since we believe that all
beings are guided by their own interest, but it turns out that it is more complicated than that, it is explained from a company,
where through rules, incentives and disincentives, you can guide someone so that their interests, become the welfare of a large
company. This does not depend on the economic current of the moment, the free market works regardless of whether people
are selfish or altruistic (which goes against classical economic theory), but if one rejects self-interest as the key motivation that
drives the economics, it is a small step to conclude that people do things for no reason, Entrepreneurship is a lifestyle choice that
genuine entrepreneurs make, there are many people who are not motivated by the money message, and the economist assumes
worst of people but this is an empty cliche. people have no social or other related components to the utility functions they
describe. It does not matter if we deny it, self-interest is clearly a very powerful motivation in human interactions, however, it is
not the only one, which economists still do not understand, selfishness is natural in the human being, but also other feelings.