CEOs More Honest Than Politicians, Preachers, and Professors

Economist Dwight Lee of Southern Methodist University has an interesting theory on what keeps professionals honest.

To summarize, most businesses, in order to remain profitable, need to maintain a constant customer base. Customers will only stick with a business that treats them honestly and fairly. But the case is not so with politicians, preachers, and professors.

Politicians have to face an electorate, but said electorate is often disinterested in politics in the first place with a short attention span even if they are interested. Plus, there are cases of gerrymandering and campaign finance shenanigans that allow politicians to ignore constituents. It is impossible to test a preacher’s extraordinary claims, and students are captive audiences. So what do they care about the professor’s honesty?

Human nature has tendencies towards greed and dishonesty. The best way to ensure one overcomes the urge tobe dishonest is free enterprise. .