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Justice and Economic Systems (Capitalism (Free Market) (Criticisms…
Justice and Economic Systems
Justice
giving people what they deserve
difficulty: hard to figure put who deserves what and why
Fairness, Equality, Rights
Desert (What one deserves/suitable rewards or punishment)
John Rawl
's Theory of Justice
identify and justify the basic principles of justice is a
Hypothetical Thought Experiment
choose on the basis of mutual self-interest and behind 'veil of ignorance'
veil of ignorance eliminates bias and makes the original position fair
original position > choose the basic principles that are to govern society
2 general principle
Principle of equal liberty: each person has equal rights (refer to egalitarianism)
Difference principle: social and economic inequalities should be arranged so that they are both
to the greatest benefit of the least advantaged persons
open to all under conditions of equality
The Nature of Justice
Aristotle
Fairness
treat similar cases alike
Emphasises the role of impartiality and consistency in justice
Equality (Egalitarianism): all benefits and burdens should be distributed exactly equal of shares of a society's or a group benefits and burdens
Rights
One is treated unjustly when one's moral rights are violated
Victor Hugo
's Les Miserables
case involved conflict of rights
right to the life is more important
Rival Principles of Distribution
Distributive Justice: Proper distribution of social benefits and burdens
trends in income distribution (disparity)
Norms for distribution
Libertarianism
one who advocates maximising individual rights and minimising the role of the state/believes in free will
the role of the government is to minimise control over citizens, their job is merely to keep citizens safe
having freedom through as little government involvement as possible
Justice consists in permitting each person to live as he pleases, free from the interference of others (unrestricted), fraud and force are forbidden
John Locke
developed the idea that human beings have a natural right to liberty and a natural right to private property. Government cannot interfere any citizen's natural rights except the interference is to protect one person
Robert Nozick
1st principle: if a person acquires a holding fairly > entitled
2nd principle: possess a
Liberalism
emphasise the rights and freedom of the individual, usually with government guarantees for those rights and freedom
having individual freedom guaranteed by governments
Capitalism (Free Market)
an economic system in which means of production of goods and services are privately owned and operated for profit (free market, has minimum restrictions from government)
a.
Companies/Corporation
has prescribed legal rights and obligations within the community
Capitalism permits the creation of companies and business organisations
b.
Profit motive
Human beings are basically economic creatures and are motivated by their own economic/monetary self interest
c.
Competition
Adam Smith
Invisible Hand contribution (
the law of supply and demand
) explained how free competition males individual pursuit of self-interest socially beneficial
Free competition is the regulator that keeps community activated only by self-interest from degenerating into a mob of ruthless profiteers
d.
Private Property
requires private ownership of the major productions (factories, warehouses, offices, machines etc)
Criticisms
Poverty and inequality
generates inequalities in income, ownership and the worker-capitalists relationship
Human nature and capitalism
human beings are more than acquisitive, individualistic and materialistic creatures
humans also have 'higher' sense of human purpose
Imperfect competition
Capitalism breeds powerful anticompetitive oligopolies
will lead to uncomfortable social relations (violence and revolution)
Public welfare will be under provided/consumed, demerit goods(cigarettes and alcohol) will be over provided/consumed
advertising and marketing will create unneeded wants and resources will be wasted
monopolies arises (undersupplying the market and overcharging)
prices will not accurately reflect social costs
Exploitation and Alienation
does not allow workers genuine freedom
keep workers in antagonistic relations with one another
Karl Marx
's argument
production concentrated in the hands of few, power are in favour of the capitalists because workers have nothing to sell but their labor therefore capitalist is able to exploit them (capitalism is unfair because it supports class struggles and labour exploitation)
Capitalism VS Socialism
socialism is an economic system characterised by public ownership of property and planned economy
Mixed economy are used in the great majority of countries today