The complex and extremely important topic of information generation in the free market (and other systems) will be discussed much further in Section 5. It should already be clear, however, that the market's continuing generation of information enables a constant amelioration of the quality of decision-making (among both producers and consumers) and of the efficiency and technological sophistication of production. Because of this continuing progress, accompanied by a growing capital base, one can reasonably expect that living standards will continue to climb in a free-market society, despite occasional minor setbacks because of natural disasters and other accidental conditions.

Let us now explore the psychological implications of ethical egoism, as manifested in self-esteem.