Comment Re:Capitalism and You (Score 1) 573
People who are not participating in the negotiations do not always come out ahead, and the net social benefit might be negative. Here are some two-party deals that are bad for society (some more extreme than others, but I think they illustrate the need for laws and social rules outside of property protection):
1. You pay me $1200/oz for gold, and I open a gold mine. The gold mine leaks poison into a nearby river, killing tens of thousands of fish, reducing life expectancy in surrounding communities by 5 years, and not being my problem.
2. I am a congressman and you are a pharmaceutical company CEO. You pay me $10 million, directly and in jobs to my underqualified relatives (and me as soon as I retire from Congress), to sponsor a bill which makes competing drugs illegal by extending your intellectual property rights another 5 years. I win, you win, and consumers get screwed with higher prices for a longer time, competing firms go out of business, and the generic version of your drug appearing 5 years later results in 50,000 avoidable deaths among the under-insured.
3. I am a hitman. You pay me to kill your wife, only $20,000, and receive $10 million of her assets that you would have lost in the coming divorce. I win, you win, she loses.
4. I go to a futures market and make bets/investments relying on a 4-degree temperature rise in the next 4 decades, open shipping lanes at the north pole, a dwindling supply of ocean-based food, etc. These are highly leveraged and worth approximately $50 Billion dollars. I then pay you to put CO2 and methane in the atmosphere as quickly as possible, investing $2 Billion in this scheme and improving the likelihood of my payoff by over 10%, making the investment an easy decision. You make tons of money, and so do I. A win for unrestricted capitalism!
These examples are crude, but meant to illustrate certain anti-social impulses inherent in unrestricted deal-making in a capitalist framework. Property rights are not as important as other human rights.