• Business

    The Tragedy of the Commons

    I don’t like to talk about politics outside of my immediate family. But this isn’t political; it’s basic free market theory IMHO. Tragedy of the Commons: It is human nature to allow an individually rational decision to become abusive to that which is common between those making said decisions. For example, Hardin liked to use herding as an example. When you have a bunch of sheep herders sharing land, each wants to increase the size of their herd even though it will eventually destroy the land to have too many sheep. Now, Wealth of Nations: Adam Smith railed against governments for interfering at all in corporations or the affairs of…