Rethinking the Meaning of Self-Interest, Rational Choice, Growth and Happiness: How the Misunderstanding of These Concepts Caused Misery for Millions
35 Pages Posted: 23 Sep 2016
Date Written: September 22, 2016
This paper examines four terms that are used a great deal by economists and demonstrates that they are often misunderstood. Not fully comprehending the meaning of these terms can result in serious problems for society. Thus, Greenspan admitted that not knowing how self-interest works resulted in the Great Recession of 2008. Other terms analyzed in this paper include rational choice, growth, and happiness.
Keywords: Greed, Self-Interest, Rational Choice, Growth, Happiness, Behavioral Economics, per Capita GDP, Adam Smith, Robert Nozick, Amartya Sen
JEL Classification: M12, M14, M19, M31, M54, J50, A22, A23, D81, G18, G21, I20, L20, L21, Q20, Q38
Suggested Citation: Suggested Citation