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The Production of Scarcity and Famine

We can all trade in the stocks, futures and derivatives markets these days by investing using the internet and stock trading software. I can go to my computer and use a browser to find any number of investment options. I can buy software which automatically buys and sells stocks for me, not knowing anything more about what I am investing in bar the fact that it has gone up in price or declined in price.

This kind of separation between the owner and the enterprise is known to bring about problems in the form of the Principal-Agent dilemma. The principal–agent problem comes about when one person, or entity, (the “agent”) is able to make decisions that impact another person or entity (the “principal”). It is thought of as a problem because sometimes the agent is motivated to act in their own best interests rather than those of the principal. Read more