Economics Dictionary of ArgumentsHome
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| Economic ethics: Economic ethics is the study of moral principles and values that guide economic behavior and decision-making. It examines issues like fairness, justice, inequality, and the ethical implications of economic policies. Economic ethics seeks to balance efficiency with social responsibility, ensuring that economic practices contribute to the well-being of individuals and society while respecting human dignity. See also ethics, morality, efficiency, economy, inequalities, justice, economics. See also Ethics, Economy._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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James M. Buchanan on Economic Ethics - Dictionary of Arguments
Boudreaux I 53 Economic ethics/Buchanan/Boudreaux/Holcombe: „The normative individualist whose ontology is subjectivist operates on the presumption that by their very being as individuals, members of humankind are and must be treated as responsible for their own choices.“(1) Liberalism: Buchanan saw a close connection between economic analysis and the political philosophy of classical liberalism. The connection begins with his individualistic approach to economics. Individuals have their own goals and desires, and the purpose of economic activity is to enable them to cooperate with each other so they can further those goals. Individuals: As economists depict it, individuals have “utility functions” and they make choices that enable them to maximize their utility. What this means in more common language is that individuals have their own goals, which each individual understands better than does anyone else. And the subject of economics, as Buchanan saw it, is to analyze how individuals interact for their mutual benefit in furtherance of those goals. Utility: Individuals gain utility from accomplishing their goals, but to do so requires that they be free to pursue their goals as they see fit. Buchanan says that “A motivating element is, of course, the individual’s desire for liberty from the coercive power of others—an element that may be almost universally shared” (Buchanan, 2000(2): 117)*. But he goes on to note that a requirement for individuals to have this liberty is that they must lack the ability to exert power over others. Boudreaux I 54 Market/individualism/Buchanan: One advantage of a market order is that it relies on voluntary exchange. Individuals can opt out of transactions if they do not see the transactions as likely to further their interests. A market order allows people to interact with each other for mutual gain and helps prevent some from gaining at the expense of others. Ethics/objectivity/Buchanan: While some economists see a clear division between positive and normative analysis - between describing the facts of the world and making value judgments about those facts - Buchanan sees a close relationship between the two. While a common argument is that interjecting value judgments into economic analysis is not scientific, Buchanan argues otherwise, saying that “Indeed the only purpose of science is its ultimate assistance in the development of normative propositions. We seek to learn how the social world works in order to make it work ‘better,’ to ‘improve’ things; this is as true for physical science as it is for social science” (Buchanan, 1962/1999(4): 308). * Buchanan’s view on this matter changed in his later years. In a series of papers published during the final decade of his life, Buchanan observed, and lamented, the rise of what he called “parentalism”—which he defined as the desire to be relieved of the responsibility of making one’s own life choices (Buchanan, 2006)(3). 1. James M. Buchanan. (1991). “The Foundations for Normative Individualism” 2. James M. Buchanan. (2000). “The Soul of Classical Liberalism,” Independent Review (Summer). 3. James M. Buchanan. (2006). "Why I, Too, Am Not a Conservative". Edward Elgar Publishing, number 3790. 4. James M. Buchanan. (1962/1999). “Appendix 1: Marginal Notes on Reading Political Philosophy.” In: James M. Buchanan and Gordon Tullock, The Calculus of Consent. Liberty Fund. _____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
EconBuchan I James M. Buchanan Politics as Public Choice Carmel, IN 2000 Boudreaux I Donald J. Boudreaux Randall G. Holcombe The Essential James Buchanan Vancouver: The Fraser Institute 2021 Boudreaux II Donald J. Boudreaux The Essential Hayek Vancouver: Fraser Institute 2014 |
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