Lecture 1 Ethics

Objection: capitalism and utilitarianism amount to the same thing

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• Objection: Capitalism is too narrow to apply to the entire commercial domain – it applies only to consumer relations

Objection: capitalism and utilitarianism amount to the same thing ➔ Utilitarianism considers everyone in the cost-benefit analysis and capitalism considers self (company) only Objection: In reality, every action by a firm affects D S or Price, so capitalism doesn’t work. ➔ The problem is not when actions affect the marketplace, but when they manipulate. For actual manipulation to be occurring, the firm must be engaging in some behaviour that hinders the market in its movement toward an equilibrium price. Most actions are not manipulating D S Price only some are – those actions breaking the rules, usually through colluding. ➔ The indication of manipulation is extraordinary profits sustained over along period of time. Unfettered demand and supply should push the sale price of a product to the manufacturing cost of that product. If earning extra profits over the long period of time, then the company is probably breaking a rule. If a company is making excessive profits over the long-term, it maybe legitimate, and it may not be. An inquiry into the firm’s practices is warranted. Objection: Capitalism is too narrow to apply to the entire commercial domain – it applies only to consumer relations, Download 0.65 Mb. Share with your friends: