Ethics in Free Market Economy Research Paper Example | Topics and Well Written Essays - 1500 words

Ethics in Free Market Economy - Research Paper Example Social justice issues related to the costs of group membership can come up in any size of a group. Benefits of group membership are also allocated through social justice mechanisms. There are certain distributive principles of social justice out of which Neo-liberal or Libertarian view will be discussed (Barusch, 2009). (Somerville & Sprigings, 2005) The distributive principle of libertarian concept says: From each according to his choice; to each according to his product (Barusch, 2009). Allocation of resources according to a product is central under the libertarian view of distribution. Libertarians believe in liberty over equality. They are of the opinion that inequality is acceptable and fosters social being and welfare in a society. Equal treatment in distribution ultimately leads to unequal distribution of resources. This is the price for freedom and government need not interfere (Barusch, 2009). Libertarians focus on the benefits of a free market over a system controlled by th e government. The reason being a free market society enjoys greater productivity among its workers and greater incentive to generate capital (Barusch, 2009). Free Market Economy Supporters of the free market economy claim that individuals should be allowed to make contracts with others regarding wages and prices and profits. People should be free to compete with each other to gain maximum benefit. They believe that if markets are set free, the outcome will be just and fair distribution of gains and responsibilities in society. People who support a free market economy will never support unregulated markets (Finifter, 2009). Free markets ensure the efficient distribution of goods to those who grab the opportunities to obtain their desired products and services. Free markets operate on people’s demands. They produce only those products which are demanded by the consumers. Consumers set their desired price. Free markets work for people, for the betterment and welfare of the socie ty (Boyes & Melvin, 2009). In free markets, prices are determined by both buyers and sellers in the market.