Market & Ethics
Free Markets and Rights:Locke
Govt needs to play a very limited role in markets as human beings have natural rights that only a free market can protect; the two natural rights are right to freedom(as they enable individual to voluntarily exchange goods with others free from coercive power of govt.) and right to private property(as each individual is free to decide what will be done with what he owns without interference from govt.);
Locke argued that if there were no govts.,human beings would find themselves in state of nature where each individual would be political equal of all others and would be perfectly free of any constraints other than law of nature;according to Locke law of nature teaches that each has right to liberty and no one can be put out of this estate and subjected to political power of another without his own consent;
Weaknesses of Locke’s views
• (Abbott’s position based on Lockean view that private property is created by one’s labour and not by govt.—as Thai govt wanted to introduce a compulsory license)
Free Markets: Adam Smith
• Father of modern economics and originator of utilitarian argument for free market; according to him when private individuals are left free to seek their own interests in free markets, they will inevitably be led to further the public welfare by an invisible hand(i.e. the market competition);
• Market competition drives self-interested individuals to act in ways that serve society; when private individuals are left to seek their interests in free markets, they will inevitably be led to further public welfare by an invisible hand;
• Market competition ensures pursuit of self-interest in market advances the public welfare which is a utilitarian argument;
• Govt. interference in markets lowers the public’s welfare by creating shortages or surpluses;
• Ludwig von Mises and FredrichA.Hayek argued that not only does a system of free markets and private ownership serve to allocate resources efficiently, but it is in
Govt needs to play a very limited role in markets as human beings have natural rights that only a free market can protect; the two natural rights are right to freedom(as they enable individual to voluntarily exchange goods with others free from coercive power of govt.) and right to private property(as each individual is free to decide what will be done with what he owns without interference from govt.);
Locke argued that if there were no govts.,human beings would find themselves in state of nature where each individual would be political equal of all others and would be perfectly free of any constraints other than law of nature;according to Locke law of nature teaches that each has right to liberty and no one can be put out of this estate and subjected to political power of another without his own consent;
Weaknesses of Locke’s views
• (Abbott’s position based on Lockean view that private property is created by one’s labour and not by govt.—as Thai govt wanted to introduce a compulsory license)
Free Markets: Adam Smith
• Father of modern economics and originator of utilitarian argument for free market; according to him when private individuals are left free to seek their own interests in free markets, they will inevitably be led to further the public welfare by an invisible hand(i.e. the market competition);
• Market competition drives self-interested individuals to act in ways that serve society; when private individuals are left to seek their interests in free markets, they will inevitably be led to further public welfare by an invisible hand;
• Market competition ensures pursuit of self-interest in market advances the public welfare which is a utilitarian argument;
• Govt. interference in markets lowers the public’s welfare by creating shortages or surpluses;
• Ludwig von Mises and FredrichA.Hayek argued that not only does a system of free markets and private ownership serve to allocate resources efficiently, but it is in