Are Sweatshops Unethical?
- Submitted by: jack5703
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- Category: Politics: Moral Issues
- Date Submitted: 05/26/2013 09:55 AM
- Pages: 16
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1.1 Question 1
The free market perspective is defined as an economic system whereby the majority of production and distribution are controlled by individuals under private ownership (Shaw & Barry, 2010). This perspective is supported by Adam Smith’s laissez-faire, which promotes an unregulated market relation, and free competition best promote the total social good. The idea is that when people are free to pursue their objectives without restriction, the invisible hand of the market will correct any market failures and ultimately result in the best for the society (Shaw, 2010; Elliot, 1990). John Stuart Mill’s economic philosophy was one aligned with the free market. However, in contrast to Adam Smith’s view, J.S. Mill supports government intervention based on utilitarian grounds; the intervention would bring the greatest good for the greatest number. He contends that this intervention is a more efficient and productive capitalist system (Shaw, 2010).
Shaw (2010) identified four main elements of capitalism, namely: companies, profit motive, competition, and ownership of private property. Capitalism permits the creation of companies by individuals, and these organisations exist as a separate legal entity. Adam Smith supports free competition, as he believes that the pursuit of self-interest is socially beneficial (Shaw, 2010). Profit-motive is in tandem with the pursuit of self-interest. Lastly, capitalism enables the production and distribution to be operated by individuals; as such, they require private ownership of the means to production, such as factories, offices, vehicles, land, and offices (Shaw, 2010).
On the other hand, David Cameron’s ideals match the elements identified by Shaw. In his speech, he is quoted as saying:
“We won't build a better economy by turning our back on the free market…we'll do it by making sure that the market is fair as well as free. While of course there is a role for government, for regulation and intervention...the real...
The free market perspective is defined as an economic system whereby the majority of production and distribution are controlled by individuals under private ownership (Shaw & Barry, 2010). This perspective is supported by Adam Smith’s laissez-faire, which promotes an unregulated market relation, and free competition best promote the total social good. The idea is that when people are free to pursue their objectives without restriction, the invisible hand of the market will correct any market failures and ultimately result in the best for the society (Shaw, 2010; Elliot, 1990). John Stuart Mill’s economic philosophy was one aligned with the free market. However, in contrast to Adam Smith’s view, J.S. Mill supports government intervention based on utilitarian grounds; the intervention would bring the greatest good for the greatest number. He contends that this intervention is a more efficient and productive capitalist system (Shaw, 2010).
Shaw (2010) identified four main elements of capitalism, namely: companies, profit motive, competition, and ownership of private property. Capitalism permits the creation of companies by individuals, and these organisations exist as a separate legal entity. Adam Smith supports free competition, as he believes that the pursuit of self-interest is socially beneficial (Shaw, 2010). Profit-motive is in tandem with the pursuit of self-interest. Lastly, capitalism enables the production and distribution to be operated by individuals; as such, they require private ownership of the means to production, such as factories, offices, vehicles, land, and offices (Shaw, 2010).
On the other hand, David Cameron’s ideals match the elements identified by Shaw. In his speech, he is quoted as saying:
“We won't build a better economy by turning our back on the free market…we'll do it by making sure that the market is fair as well as free. While of course there is a role for government, for regulation and intervention...the real...