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Iām not interested in the economic theory; Iām an economics student. Iām more looking for the philosophical explanation of why that is the case rather than how. Is it just as a consequence of human nature? Specifically the need to be compensated for their risk by investing in the company, is it just because we are mostly motivated by self-interest?
Should it be something else? Perhaps if a company is making surplus profit, instead of the investors (or the owner in case of a private business) keeping it, they ought to use to social good?
I mean, is it just down to the free market allowing the human psychology to decide it?
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- 8 months ago
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