However if a given commons is more complicated than a grass pasture, like
the banking system for instance, and the individual pursuit of profit
degrades the quality of the whole system, then eventually you're gonna have
a big crash because self-interest is god.
Ooops!  Looks like it happened.

John



On Sun, Jul 26, 2009 at 1:47 PM, <[email protected]> wrote:

>
>
> [Craig, previously]
> > Adam Smith argues that society prospers more by each
> > pursuing their self-interest (“invisible hand”).
>
> [John]
>
> > But the thought experiment "tragedy of the commons" refutes Adam
> > Smith.
>
>
>
>
>
> Actually the "tragedy of the commons" SUPPORTS Adam Smith.
> If you have land & divide it among 4 ranchers, each rancher will
> balance his number of grazing cows with the amount of feed that grows
>
> in his sector.  It is in the self-interest of each rancher not to let
> his cows consume all the feed before it can replenish,
> since then his cows would starve.
> However, if the land is held in common, each rancher is not so constrained,
> because after his cows demolish 1/4 the feed, they invade the next 1/4,
> then the next… Craig
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