Adam Smith described self-interest and competition as the two forces that drive the invisible hand of the market. Self-interest in this context can be described as one’s advantage and well-being. The choices made on a day-to-day basis solely depend on which is the best option available. These choices involve time and the allocation of scarce resources all in the pursuit of self-interest; which in turn could potentially harm those who are less fortunate. Taking money from the less fortunate further increases the inequality gap between the upper and lower class. In Joseph Stiglitz essay “Rent Seeking and the Making of an Unequal Society” he describes rent seeking, a term used by the top 1% of the upper class to further expand their profit. Consider …show more content…
These groups receive extra money and can do with whatever they please, such as pay large amounts to the company’s CEO’s. In Michael Moss’ article “The Extraordinary Science of Addictive Junk Food” he gives us a glimpse of the world of the food markets aggressive mannerisms to achieve a higher profit. Although some say CEO’s operate to benefit the company, they function in their own self-interest to shape the economy. CEO’s manipulate the units of economy by using market strategies to create a product that is more appealing. An individual person is simply a unit of the economic world that can later on build things such as firms and industries. With individuals collecting together to create these larger units, competitive markets will form to boost the economy. In Stiglitz essay, he talks about the rivalry between two markets saying, “When markets are competitive, profits above the normal return to capital cannot be sustained…are driven down to zero, a disaster for those seeking big profits” (Stiglitz 398). For a market to be deemed successful it must make a profit. With a competitive market, rival CEO’s will purposely drop prices of certain services and products to seem more appealing. Whichever product that is cheaper and considered more appealing, the consumer will buy more of that
Journalist, David H. Freedman, and author of How Junk Food Can End Obesity, dedicates an article to address the situation regarding the wholesome food movement. In his writings, he points out that although this new phenomenon brags about healthier foods being made available, there are some faulty aspects within the cause. Many loyal fast-food customers are put off by the anouncement of healthier menu items, while health fanatics are raving about restaurants catering to their needs. There are two types of consumers in the world of food; both of which are blind to the opposing sides’ work ethics.
Nobel Prize winner, professor, author and economist, Joseph E. Stiglitz, wrote “Of the 1%, by the 1%, for the 1%.” Joseph E. Stiglitz served during the Clinton administration as chairman of the Council of Economic Advisers and is former senior vice president and chief economist of the World Bank. Throughout his piece Stiglitz argues how America’s economy is not likely to succeed in the future. Stiglitz creates a strong and credible argument throughout his piece by using the appeals of ethos, pathos and logos.
In Michael Moss’ “The Extraordinary Science of Addictive Junk Food” he argues that companies have a huge influence on what consumers purchase and have been successfully able to get people addicted to junk foods because one’s willpower does not overpower their lack of adequate information and time, vulnerability to manipulative marketing and formulation of products, and their socioeconomic status.
In the book Fast Food Nation: The Darks Side of the All-American Meal, Eric Schlosser claims that fast food impacts more than our eating habits, it impacts “…our economy, our culture, and our values”(3) . At the heart of Schlosser’s argument is that the entrepreneurial spirit —defined by hard work, innovation, and taking extraordinary risks— has nothing to do with the rise of the fast food empire and all its subsidiaries. In reality, the success of a fast food restaurant is contingent upon obtaining taxpayer money, avoiding government restraints, and indoctrinating its target audience from as young as possible. The resulting affordable, good-tasting, nostalgic, and addictive foods make it difficult to be reasonable about food choices, specifically in a fast food industry chiefly built by greedy executives.
Nestle, Marion. Food Politics: How the Food Industry Influences Nutrition and Health. Berkeley: University of California Press, 2002.
In the course of a detailed investigation of the food industry, Michael Moss, the author of “The Extraordinary Science of Addictive Junk Food”, learns that many corporations use the findings of contemporary science to create addictions that undermine the health of millions of Americans while raking in enormous profits. This ameliorates the impact of unpleasant events and reduces the possibility of getting a mood disorder, diminishing the consumption of drugs. Gilbert explores some experience—failed marriages and lost jobs, for example—that is able to trigger psychological defenses and shift the blame onto somebody else so as to make people feel better. “When experiences make us feel sufficiently unhappy, the psychological immune system cooks facts and shifts blame in order to offer us a more positive view” (Gilbert 136).
Our current system of corporate-dominated, industrial-style farming might not resemble the old-fashioned farms of yore, but the modern method of raising food has been a surprisingly long time in the making. That's one of the astonishing revelations found in Christopher D. Cook's "Diet for a Dead Planet: Big Business and the Coming Food Crisis" (2004, 2006, The New Press), which explores in great detail the often unappealing, yet largely unseen, underbelly of today's food production and processing machine. While some of the material will be familiar to those who've read Michael Pollan's "The Omnivore's Dilemma" or Eric Schlosser's "Fast-Food Nation," Cook's work provides many new insights for anyone who's concerned about how and what we eat,
Greed Economics: The uplifting or debilitating effect of the excessive desire of gain on the production, consumption and distribution of goods and services.
Carnegie states, “Under the law of competition, the employer of thousands is forced into the strictest economies, among which the rates paid to labor figure prominently, and often there is friction between employer and the employed, between capital and labor, between rich and poor” (393). It is this competitive nature which allows the hardest working individuals to rise above their peers, create personal wealth and continue to accumulate wealth. Competition is a beneficial to capitalism. A company can produce an item and sell the
The "Food/Challenge Corporate Abuse of Our Food." Corporate Accountability International. Stopcorporateabuse.org, 21 June 2013. Web. The Web.
It's true that this desire for things is what drives our economy. The free market has given us great blessings, but it has in some ways also put us on the wrong path -- the path to a selfish, unhappy society. Michael Lerner, who worked as a psychotherapist to middle-income Americans notes that
Section 1: Typically, we need a well-balanced meal to give us the energy to do day-to-day tasks and sometimes we aren’t able to get home cooked meals that are healthy and nutritious on a daily basis, due to the reasons of perhaps low income or your mom not being able to have the time to cook. People rely on fast food, because it’s quicker and always very convenient for full-time workers or anyone in general who just want a quick meal. Eric Schlosser, author of Fast Food Nation argues that Americans should change their nutritional behaviors. In his book, Schlosser inspects the social and economic penalties of the processes of one specific section of the American food system: the fast food industry. Schlosser details the stages of the fast food production process, like the farms, the slaughterhouse and processing plant, and the fast food franchise itself. Schlosser uses his skill as a journalist to bring together appropriate historical developments and trends, illustrative statistics, and telling stories about the lives of industry participants. Schlosser is troubled by our nation’s fast-food habit and the reasons Schlosser sees fast food as a national plague have more to do with the pure presence of the stuff — the way it has penetrated almost every feature of our culture, altering “not only the American food, but also our landscape, economy, staff, and popular culture. This book is about fast food, the values it represents, and the world it has made," writes Eric Schlosser in the introduction of his book. His argument against fast food is based on the evidence that "the real price never appears on the menu." The "real price," according to Schlosser, varieties from destroying small business, scattering pathogenic germs, abusing wor...
The sole purpose of a company is to offer goods and services while making a profit. If people have a liking for food products with so many unhealthy items and are willing to buy them, the companies have no obligation to reduce the amount of added ingredients. The companies aren’t the ones forcing the public to overeat. However, these companies shouldn’t market their products to people who they can easily exploit, like children and those who are penurious. Michael Moss, author of the article “The Extraordinary Science of Addictive Junk Food” interviews several people who worked for certain big brand companies and gives us an abundant amount of information on how the food companies make and market their food to “get us hooked”.
Capitalism, by definition is a good thing. It allows an individual the freedom of controlling their economic destiny. One can open a business, control its prices, and expenditure in which the business either succeeds or fails in proportion to how well it is making profits. The top 1% has taken advantage of it fully and has accumulated vast amounts of wealth and prestige. Although, as shown by this video their profits are rising exponentially while the rest fall behind. It is an interesting topic that is important today and the economy’s future. Do we need to regulate the amount of wealth? Is there a need of taxation to balance this difference? According to the rising percentages, what will happen when big corporate businesses control most of the wealth? These are some questions that can be extrapolated from what’s given.
Economics of Reich “Why the Rich are getting Richer and the Poor, Poorer” written by Robert Reich, describes as the title says, why the rich are getting richer and the poor, poorer. In Reich’s essay, he delves into numerous reasons and gives examples of each. It makes one wonder if the world will continue on the path of complete economic separation between the rich and the poor. One very important factor Reich examines in his essay is that large corporations are always trying to find the edge, whether that is new technology or cheaper wages. One may ask, how does that affect me?