The Egoistic Friend

This is the self-interest of society: altruism enhances the overall level of welfare. It redistributes resources more equitably, it tackles market failures more or less efficiently (progressive tax systems are altruistic), it reduces social pressures and stabilizes both individuals and society. Clearly, the self-interest of society is to make its members limit the pursuit of their own self-interest? There are many opinions and theories. They can be grouped into:

1. Those who see an inverse relation between the two: the more satisfied the self interests of the individuals comprising a society - the worse off that society will end up. What is meant by "better off" is a different issue but at least the commonsense, intuitive, meaning is clear and begs no explanation. Many religions and strands of moral absolutism espouse this view.
2. Those who believe that the more satisfied the self-interests of the individuals comprising a society - the better off this society will end up. These are the "hidden hand" theories. Individuals, which strive merely to maximize their utility, their happiness, their returns (profits) - find themselves inadvertently engaged in a colossal endeavour to better their society. This is mostly achieved through the dual mechanisms of market and price. Adam Smith is an example (and other schools of the dismal science).
3. Those who believe that a delicate balance must exist between the two types of self-interest: the private and the public. While most individuals will be unable to obtain the full satisfaction of their self-interest - it is still conceivable that they will attain most of it. On the other hand, society must not fully tread on individuals' rights to self-fulfilment, wealth accumulation and the pursuit of happiness. So, it must accept less than maximum satisfaction of its self-interest. The optimal mix exists and is, probably, of the minimax type. This is not a zero sum game and society and the individuals comprising it can maximize their worst outcomes.

The French have a saying: "Good bookkeeping - makes for a good friendship". Self-interest, altruism and the interest of society at large are not necessarily incompatible.

next: The Habit of Identity