Not A Surprise

Over at WSJ, Professor Steven Horwitz brings to light the behavior we would expect from corporations in disasters.  His concluding paragraph:

As companies engage in peaceful commerce with their friends and neighbors, they begin to inculcate what the economist Deirdre McCloskey calls the “bourgeois virtues,” which go vividly on display when disaster strikes. Many Albertans, as they return to their homes now that the fires have subsided, are glad today that they lived near those supposedly evil oil companies.

It is not a surprise that corporations act like this and the government often doesn’t.  Corporations need to worry about how they are viewed.  It is not true that corporations are perfect at decision making.  It is just true that they have the right incentives while the government has guns.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s