Of Yogis, Grihastis and Institutions

If people were self-sacrificing, self-effacing, other-directed, rational, visionary, benevolent beings — “yogis” — then it would not matter very much what kind of institutional arrangements they lived under: the resulting social welfare of their collective actions would be fairly even regardless of whether they lived in a market-oriented capitalist order or a collectivist socialist order. But unfortunately for all of us, people are self-interested, myopic, irrational, imperfect beings — “grihastis”. Given the reality of living in this material world, the institutional arrangement does matter.
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