[acconrad]

As a retort to the conservative theory, the biggest flaw I see in that argument is

> "People naturally make the most rational economic decisions in their journey to achieve maximum happiness"

Current economic thinking of the financially illiterate maximizes happiness on local, and not absolute maxima. You can see this in the everyday ethos of American culture: we want what satisfies us now; we want what is quick and easy. This comes at the cost of it being the best for us, which is oftentimes irrational.

An example of this would be buying fast food over healthy (natural) food. Rationally it's better to buy fast food as it is cheaper than healthy food (on a pure cost basis) and it sates local maxima for immediate happiness in the taste of food. However, it is not a rational economic choice in the long run, as unhealthy food choices correlate with increase disease, and thus higher long-term medical costs, and that sickness leads to an overall (absolute) maxima being lower.