Good morals is good economics, is this statement true or false? defend your answer?

True. Bad morals impact on our economy, examples:





1) Uninsured motorist coverage... how much do we waste on that?





2) Security guards. They could be doing other types of work.





3) Bernie Madoff. His fraud worsen global jitters.





4) The real estate speculators lying about their income on their mortgage applications, and the complicity of their mortgage brokers encouragement of their lies just so they can make a commission. The resultant sub-prime mess exacerbated the housing mess and resulted in what will be a nationalization of US banks. Tens of Trillions lost in housing and stock markets worldwide.





5) S%26amp;L crisis. Another example of bad morals hurting everyone.





6) Junk bond and insider trade debacle of 1980's.





7) Current baracuda's in market manipulating markets and using short selling to gang up and destroy stocks.Good morals is good economics, is this statement true or false? defend your answer?
For the economy to work people must be honest in their dealing with others and not steal or lie and the government can not be corrupt and official should not take bribes. The more dishonesty there is the higher the cost of monitoring others behavior and the economy becomes less efficient and high levels of dishonesty will cause to to fail. That is most of the virtues we associate with morals except altruism and ones sex life is required.Good morals is good economics, is this statement true or false? defend your answer?
Yes and no. Good economics and entrepreneurs create wealth... they get richer AND they create a larger amount of wealth to be distributed amongst people. Its not like they take money from you and keep it, they actually create wealth.


Good economics can seem like they are selfish, but the consumer is what gives them power. If you are really looking forward to helping people in your community good economics and entrepreneurship can help them as well as you. So by helping yourself through good economics leads to helping your neighbor.


Money in this world is not Zero sum (Meaning if he has it I dont... wealth can be simply created out of whatever with some work.)