Why does Peak Individualism matter?
We live in a highly developed Capitalist society. Like all structures of society this is by no means perfect. One of the major issues we face is individualism. Crime is an example of this, people may steal something from a shop because they want it for themselves. However, this has not been earnt, the cost is generally on the shopkeeper.
They may be insured, therefore the cost is with the insurance company? Insurance is an interesting example of Individualism at work. Really, insurance is just a way of predicting risk. The store owner decides to pay a set fee on a regular basis rather than each time an event happens. But the insurance company has to create procedures, pay for their office space etc and generate a profit. Therefore the store owner is likely to pay more by having insurance. Insurance companies generally make a profit. But isn’t it wrong to make profit from theft? The store owner is now in a position that if something is stolen she/he gets revenue. Therefore the insurance industry create an incentive to be dishonest simply by their existence.
Is the insurance industry making a net benefit to society? Individuals may like it because they don’t have to worry about losing their mobile phone or having their house burgled. In fact burglary can result in the insurance replacing old with new so the ‘victim’ is financially better off. So crime doesn’t matter? My insurance will cover it? We get into the realms of mutual causality. Insurance has an effect on you as well as providing benefit.
In a community or smaller town the collectivism there generally lowers crime. When criminal activity happens it is normally witnessed by somebody. However, in a small community, that person generally tells somebody and in time the community knows what has happened and views the perpetrator accordingly. In a larger community, i.e. a city the anonymity can promote crime through decreasing the visible social cost.
The idea that Insurance encourages people to cheat and doesn’t provide net benefit to society isn’t generally considered. If it creates financial wealth then it will look desirable in GDP terms.
Pharmaceuticals are similar, on an individual level they generally provide benefit. But on a societal level the increase in their use creates increasingly resilient viruses. These include Avian flu.
Climate Change is similar, on an individual level we enjoy the warmth of a fire, electricity directly to our home or traveling by car. However excessive use of fossil fuels has lead to climate change which threatens ecosystem and therefore our access to food and our way of life.
Therefore I see individualism as severely damaging business, health and environment. The notion that we may be working away from this trait is therefore of great interest.
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