One big issue facing business, and finance specifically, rests upon the foundation of maximizing shareholder wealth. It's very easy to take shortcuts in order to do that, but at what cost?

There is an ethical theory called "moral hazard," which really means that people have a tendency to take more risk than they normally would when they aren't using their own money. Think about it for a minute. If you've ever gotten a nice surprise for a birthday or graduating in the form of a check, you probably didn't spend it the same way as if you went to work and earned that money. Well businesses tend to have the same mentality. They have shareholders' money.

So let's explore a real-life scenario playing out in front of us in the past year. Please watch The Economics That Made Boeing Build the 737 Max in its entirety. Feel free to comment on your classmates posts.

After reviewing the video for the Max 737, you are asked to do the following:

1. Provide your own thoughts on video. Who violated moral hazard? What is the moral obligation by Boeing? How about American? The government?
2. Identify the stakeholders, not just the shareholders. Did the stakeholders benefit by the actions of Boeing, American, or the government?

3. Why does this situation exist? How can this be corrected moving forward?