Sumbel Ijaz_24020212

Assignment 1:
Economics often argues that the pursuit of happiness by self-interested individuals creates a
rich (and therefore desirable) society. Economic policy is equally often concerned with
creating an enabling environment in which economic agents, motivated by (greed?) generate
growth. More traditional ways of thinking (religious in particular) did not consider the
accumulation of wealth as a virtue (see Surah- Humazah for example).
Economics as a discipline was born in an era when traditional ways of thinking were giving
way to what we now know as modernity. An example of thinking that constituted Adam
Smith’s intellectual environment can be seen in a poem by Bernard Mandeville – The
Grumbling Hive: or, Knaves trun’d Honest (1705). An extract is presented below (the more
industrious student is encouraged to read the whole poem)

Q1) What is the basic tradeoff presented in this poem (you may get help from
Wikipedia but do spend half an hour thinking before you do that). Write a few lines –
not more than half a page. [5 points]
The basic tradeoff that I find in this poem is between Virtue and Utility/profit. In this poem,
the hive of bees represents humans in their environment working to make their lives better.
The poem's beginning demonstrates one scenario where the bees motivated by self-interest
and greed work to utilize as many opportunities as possible to fulfill their desires. This
situation represents one end of the tradeoff where the humans are expected to work with all
corrupt and vices to meet their needs and wishes. The second scenario demonstrated is
when bees start working morally and virtuously. This shows that a man can work without
greed, but this does not result in great profits. The poem shows that the fundamental tradeoff
is between virtue and profit. It shows that if a man motivated by greed tries to fulfill his
wishes immorally results in profit, but if he chooses to limit himself by working morally, it
does not result in great luxuries and money. So the poem shows that a man, just like bees,
has to choose between morality or profit.

Q2) What is *your* view on this tradeoff? [This is a ‘free’ question – there is no right or
wrong answer. [10 points. Grading scheme – 4 points for really not writing much. 6
points for trying. 8 points for impressing me.

I believe the tradeoff clearly shows that more profits or productivity results from practicing
immorality. If a human being is motivated from greed, self-interest, and personal gains, they
tend to work harder and go to great lengths to get what they desire. The poem says, “ that
lived in luxury and ease’’ This shows how ease and luxury come to the societies and
communities motivated by self-interest. I believe it is essential for us to have aims and
desires. Logically these aims and desires make sure we as humans are productive and work
hard for something beneficial in return. Still, I believe that an immoral society will result in a
lot of unfairness. An example of this is that all students desire an excellent GPA and grade to
help them later in life for jobs and careers. We as students have many opportunities to be
immoral and get those grades through cheating and plagiarism. But due to relative grading,
each student who cheats to get a better grade affects the mean so that some other student’s
grade will be affected. I believe it is wrong to be immoral if it harms others. An immoral and
corrupt society may flourish, but it would also negatively affect a vast underprivileged
population of the community. The wealthy may buy everything and everyone for their good
and interest. For example, A politician has enough money and links to get their child in an
institute without any hard work, or somebody can easily buy a judge for their excellent. When
evil in society starts, it has no end. A community that only benefits the immoral will
encourage all of its population to become corrupt and immoral. This results in a lot of chaos
because everybody will ready to go any lengths for their own benefit.. A corrupt society in
which only some individuals fulfill their worldly desires easily results in a community where
hard work, competitiveness, and aspiring society will end For example, many students will
stop working hard. After all, they can not get a job because they don’t have links .Such a
society only benefits the rich while it damages the lives of a larger population of those
whose opportunities are stolen. No justice, law, and order can prevail in a society where
immorality can achieve everything. If criminals can run away with crimes, many criminals will
emerge. Nobody is affected in a society where virtue, law, and order are considered, and
everybody gets what they work for. Such a society will not discriminate against any person.

Note: You can take an ethical position or you can comment on the logic of the proposition. I
am really interested in hearing your own thoughts so please don’t spend too much time
searching the internet for an impressive answer (Its not worth it and it defeats the purpos).

Poem
A Spacious Hive well stock'd with Bees,
That lived in Luxury and Ease;
And yet as fam'd for Laws and Arms,
As yielding large and early Swarms;
Was counted the great Nursery         
Of Sciences and Industry.
No Bees had better Government,
More Fickleness, or less Content. (RM: this is a useful line to think about)
They were not Slaves to Tyranny,
Nor ruled by wild Democracy;         
But Kings, that could not wrong, because
Their Power was circumscrib'd by Laws.
The "hive" is corrupt but prosperous, yet it grumbles about lack of virtue. A higher power
decides to give them what they ask for:
But Jove, with Indignation moved,
At last in Anger swore, he'd rid        
The bawling Hive of Fraud, and did. (Useful line)
 The very Moment it departs,
And Honesty fills all their Hearts;
This results in a rapid loss of prosperity, though the newly virtuous hive does not mind:
For many Thousand Bees were lost.
Hard'ned with Toils, and Exercise
They counted Ease it self a Vice;
Which so improved their Temperance;   
That, to avoid Extravagance,
They flew into a hollow Tree,
Blest with Content and Honesty.
The poem ends in a famous phrase:
Bare Virtue can't make Nations live
In Splendor; they, that would revive
A Golden Age, must be as free,
For Acorns, as for Honesty.