Final answer:
The welfare of society in relation to economic self-interest is a nuanced issue that requires a balance between individuals pursuing personal goals and ensuring these pursuits do not harm the overall societal good. While the invisible hand suggests self-interest can lead to societal benefits, realities such as public goods problems and negative externalities indicate the necessity for regulation and moral considerations.
Step-by-step explanation:
The question of whether the welfare of society is best served by letting people pursue their own economic self-interest is a classic debate in economics and social studies. Economists argue that self-interest can lead to an efficient allocation of resources through the mechanism of the invisible hand, as described by Adam Smith. This concept suggests that when individuals pursue their own economic interests, they inadvertently contribute to the economic well-being of society as a whole. However, there are concerns related to moral aspects and potential negative effects on societal welfare when self-interest is pursued without regard for others.
For instance, the pursuit of self-interest may lead to public goods problems where individuals do not contribute to the common welfare, such as in the case of taxation and public services. Moreover, unchecked self-interest can result in negative externalities, such as environmental degradation or worker exploitation, that harm broader society. The challenge is finding a balance between allowing individuals to pursue their interests and ensuring those pursuits lead to overall societal benefits without infringing upon the rights of others.
To answer the specific questions posed, certain societies may find greater benefits in allowing for the pursuit of self-interest while others may consider a collective approach more advantageous. Balancing private gains with the public good is a perpetual goal for societies aiming to provide economic success and social welfare. Additionally, both personal freedom and the standard of living are valuable, and finding the acceptable trade-off between the two is often subject to cultural and historical context, such as a Russian's perspective in the 1930s.