There are tons of real-world situations in which individuals, by making choices that benefit themselves, create a situation that is worse for everyone overall.

There are tons of real-world situations in which individuals, by making choices that benefit themselves, create a situation that is worse for everyone overall. It's basic microeconomics https://en.wikipedia.org/wiki/Tragedy_of_the_commons https://en.wikipedia.org/wiki/Tragedy_of_the_commons