Economists, ethicist and business sages persuade us that honesty is the best policy but their evidence is weak. We hoped to find data that would is weak. We hoped to find data that would support their theories and thus, perhaps encourage higher standards of business behavior. To our surprise our pet theories failed to stand up. Treachery, we found can pay. There is no compelling economic reason to tell the truth or keep one’s word punishment for the treacherous in the real world is neither swift nor sure.
Honesty is, in fact primarily a moral choice. Business people do tell themselves that, in the long run, they will do well by doing good. But there is little factual or logical basis for this conviction. Without values without a basic preference for right over wrong trust based on such self-delusion would crumble in the face of temptation. Most of us choose virtue because we want believe in ourselves and have other’s respect and belief in us.
And for this we should be happy. We can be proud of a system in which people are honest because they want to be, not because they have to be. Materially, too, trust based on morality provides . great advantages, it allows us to join in great and exciting enterprises that we could never undertake if we relied on economic incentives alone. Economists tell us that trust is enforced in the market place through retaliation of reputation. If you violate a trust your victim is apt to seek revenge and others are likely to stop doing business with you, at least under favorable terms.
A man or woman with reputation for fair dealing will prosper. Therefore, profit maximizes are honest. This sounds plausible enough until you look for concrete examples. Cases that apparently demonstrate the awful consequences of trust turns out to be few weak while evidence that treachery can pay seems compelling.
1- What did the author find out about the theory the theory that honesty is the best policy?
2- Why does the author say that one can be proud of the present situation? Because people are..
3- What do economists and ethicists want us to believe?
4- Which is the material advantage which the author sees in being honest? It permits one to...
5- Which of the following is the same in meaning as persuade as used in the passage?
6- The phrase “stand up” as used in the passage means.
7- Which is the same in meaning as the world “compelling” as used in the passage?
8- Why do businessmen, according to economist remain honest? Because dishonest, businessmen.
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