Friday, January 25, 2019

Who Should We Trust?


Column 2019-2 (2/14/19)

Trust is indispensable to a prosperous civilization. Try to imagine your life if you didn’t trust anyone. You would have to test all the food you bought to make sure it wasn’t spoiled or poisoned. But, wait, you wouldn’t be able to trust the tester.

What about trusting the mechanic who fixes the breaks on your car? The clothing you buy might be saturated with dangerous chemicals. The bank might never return your money.

Civilization is built on trust. We generally trust the people who produce and deliver things we consume or use. If we doubt the trustworthiness of a supplier we turn to another.

Some individuals aren’t trustworthy. How can we weed them out? We should start with the understanding of some basics of human nature. First we should reject the false idea that some people are selfish and others are not.

People often judge selfishness by how much an individual wants material things. Obtaining material items isn’t anyone’s ultimate goal. People want things because they believe those things will bring them satisfaction. Everyone’s ultimate goal is to maximize their satisfaction. The goods and services we pursue are only means for achieving our ultimate goal. When a person makes a choice, he choose the option he believes will yield the most satisfaction. When it comes to satisfaction, everyone is totally selfish.

When the manufacturer, merchant, or mechanic serves you he expects to increase his own satisfaction. He may gain some satisfaction from a job well done. That satisfaction doesn’t put bread on his table. He serves you mainly because he hopes to use the money you pay to buy something he will find satisfying.

Most of your suppliers in the marketplace are motivated to earn your trust, even though most of them don’t know you exist. Only the fly by night con artist can disregard pleasing you.

If you can’t withhold payment from a supplier, he has far less reason to please you. If your supplier is accountable to someone other than you, his self interest demands that he seek to please that person rather than please you. You trust such suppliers at your peril.

The idea that you can’t trust business people because they seek profits doesn’t hold water. Free market businesses must first please their customers and earn the customer’s trust.

If a business gains its profits from government subsidies and other favors, it will be more concerned with pleasing politicians and government bureaucrats than with pleasing customers.

Most government enterprises don’t sell their products. Thus, they don’t have customers to serve. A few, such as municipal water works, sell their product, but usually have a monopoly in their service area. Either way, user satisfaction doesn’t have to be high on their list of concerns. Every employee’s future hangs on the pleasing of the bureaucrats and politicians above them. The employees future doesn’t much depend on earning the trust of the users of the product. Thus, there is reason to be concerned about trusting providers of government services.

Some people fantasize that government employees being free of the profit motive faithfully serve the public. Being free of the profit motive, only frees government personnel from the need to please the consumers. Like everyone else government personnel seek first to please themselves.

They are much more free to do so than are those who work in the private sector. Thus, there is far less reason to trust the so called public servants. The real public servants work for free market enterprises where their only options are serve or fail.

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Copyright 2019
Albert D. McCallum

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