The Goldman Sachs case brings to mind again Max Weber’s Unofficial Corollary. To recap: Weber posited that capitalism took off in American because of the preconditions created by Calvinism: hard word and ethical behavior.
Now we’ve got a nice hard look at capitalism with no moral underpinning, where Making Money is the be-all and end-all.
Whether a crime was committed is not the point. Likewise the religious underpinnings are not the argument here. The point is that a corollary to the Weber Thesis is that when Making Money is the sole basis for judging right and wrong, the outcomes long-term seem to suffer. The Iterative Prisoner’s Dilemma says better long-term outcomes result when everybody plays cooperatively.
Andy Bebut is way over my head – but don’t they tell us that reading difficult books with our children will help their brains grow? So read this post on the Wall Street Examiner. Essential point: The banking system isn’t the core of the economy. People make and do stuff are the core. The banking system is a peripheral enabler – and should be compensated as such.