AM 1150 Kelowna - Radio Rallies & Reversals

Much has been recently about the issue of more regulation versus less regulation. There was an interesting article in the New York Times back on July 12, 2009 by Robert Frank titled: "The Invisible Hand, Trumped by Darwin?" Now the 'invisible hand' theory was by that economist guy Adam Smith, while Charles Darwin was that 'evolution' guy.

Adam Smith's 'invisible hand' theory essentially says that when greedy people are left to pursue their own self interest, they will (as if guided by an invisible hand) pursue that which is to the good of all. Now Darwin and his evolutionary theory would say that is perhaps the exception and that evolutionary theory is will of evidence to the contrary. I don't think we have to go far to recall some recent examples - In the pursuit of profits, society as a whole has had to endure three recessions and two bear markets, thanks to the greed of a few individuals.

It is for this reason that regulation is needed to provide some boundaries within which individuals, in the pursuit of their own self-interest, must operate and be held accountable. The debate on how much, is on going. Perhaps in the pursuit of self-interest, we'll keep that in mind.

GB