There is a vast difference between the REASON people do things and the EFFECT their actions have. There is even more difference between the reason people SAY they do things and the effect their actions have.
I go to work every day mostly because I want money. However, the effect of me going to work is that my employer is provided services it finds valuable. The reason my employer does what it does is to make money for its shareholders, but the effect it has is to make it easier and cheaper for other companies and individuals to access the capital markets. Perhaps I could start a company which was to be run as a non-profit with the intent of doing precisely this. Would this company do a better or worse job of it than my for-profit employer? If we took donations from others to provide this improved access, what type of services would we provide, to who, and how would this compare with the socially optimal allocation of resources?
I go to work every day mostly because I want money. However, the effect of me going to work is that my employer is provided services it finds valuable. The reason my employer does what it does is to make money for its shareholders, but the effect it has is to make it easier and cheaper for other companies and individuals to access the capital markets. Perhaps I could start a company which was to be run as a non-profit with the intent of doing precisely this. Would this company do a better or worse job of it than my for-profit employer? If we took donations from others to provide this improved access, what type of services would we provide, to who, and how would this compare with the socially optimal allocation of resources?
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